- Potential Investment must be ready to present a feasibility study which is a proviso for IPDC assistance.
- Projects must not have any adverse impact on the economy, its employment situation or be environmentally hazardous.
IPDC will analyze and design the optimal financing plan for the project and co-ordinate it with other lenders. The plan should provide funds to meet all costs including feasibility studies, organizational expenses, land, construction, machinery, equipment, training, market development, interest payment during construction, start up expenses including any initial losses and adequate working capital.
Financing for projects is provided through leases, direct loans, equity participation or a suitable combination of both services.
Leasing provided for 3-5 years, Working Capital finance for 1-2 years. Financial support is unlimited but management must be convinced with the project financing worth.
In case of the expansion of successful businesses or the initiation of new ventures, IPDC participation within the range specified above does not exceed 33% of the total cost or 25% of the total net worth. This limit might be relaxed if the project merit demands special consideration.
IPDC normally holds a minority position in terms of the overall equity investment, but may take controlling positions and be represented in the Boards of these enterprises.
Financial participation is expected be on a seniority basis, sharing in the first lien on fixed assets together with any appropriate collateral.