Project Criteria and Eligibility

NORSAD supports project companies by extending medium to long-term loans and guarantees that meet among other things the following:

• The project is technically feasible and economically viable.

• The project complies or shall comply with International Social and Environmental Standards.

• The project has positive development impact such as employment generation, foreign exchange earnings, transfer of know-how through training and technical assistance etc

• There is acceptable collateral normally covering the loan.

• The project cost must be adequately covered by equity or quasi-equity instruments provided by the project promoters and other investors. Existing assets relevant to the proposed project may be considered on a case-by-case basis as part of equity contribution.

Financing Terms

NORSAD financing may be used for capital investments, importation of machinery and working capital (only as part of total investments). 

• Loan size: Average of between USD 0.5 million and 3 million.

• Maturity: Maximum 7 years with grace period of up to 2 years on principal only
• Lending Currency: EUR, USD, ZAR
• Interest rate: Fixed or variable market based, taking into consideration project risk.
• Front-end fee of 1% per annum
• Repayment: Quarterly on interest and principal
• Collateral: Projects assets and/or guarantees