What is Hatana-ERF 2?
In April 2020, the Government of Rwanda (GoR) established an Economic Recovery Fund (ERF) to support the recovery of businesses hit by the COVID-19 pandemic so that they can survive, resume operations and safeguard employment, thereby cushioning the economic effects of the pandemic.
The Access to Finance for Recovery and Resilience (AFIRR) is a project designed to further support the ERF by increasing access to finance towards businesses post COVID-19. The total project funding is $257.50 million. The project will be implemented by BRD plc and BDF.
The component of the project that is implemented by BRD Plc is referred to as Hatana- ERF 2, it will provide affordable long-term financing for commercially viable projects in the manufacturing value chains.
Hatana encourages businesses to take a risk and participate actively in the recovery of our economy with the support of BRD.
Hatana, Turagushyigikiye!
Investment Window- FRW150 Billion
This window will support your business if you are looking to expand or start a high-growth potential manufacturing business Financing will be provided for Fixed assets acquisition, operational expenditure related to building scale, and working capital.
- Lending max: FRW500 Million
- Interest Rate: 8%Tenor: up to 15 years(with a possible grace period of 3 years)
- BDF Guarantee Coverage: 50-75% (at BDF discretion)
- Lending max: FRW 2 Billion
- Interest Rate: Blended with your Participating Financial Institution (PFI)’s fund ( 60% of the funding at 8% and 40% at the PFI’s commercial rate)
- Tenor: up to 15 years(with a possible grace period of 3 years)
- BDF Guarantee Coverage: 50-75% (at BDF discretion)
- Lending max: FRW5 Billion
- Interest Rate: Blended with your Participating Financial Institution (PFI)’s fund ( 60% of the funding at 8% and 40% at the PFI’s commercial rate)
- Tenor: up to 15 years(with a possible grace period of 3 years)
- BDF Guarantee Coverage: 50-75% (at BDF discretion)
All businesses in below sectors are eligible:
- Construction Materials and linked value chain
- Agro-processing and linked value chain
- Textiles and manufacturing and linked value chain
- Other light manufacturing subsectors and linked value chain
- Affordable housing (Made in Rwanda component only)
Working Capital Window- FRW10 Billion
This window is open to all sectors and will support your business pay your employees and your operating/fixed costs as well as jumpstart your production/operations after the economic slowdown caused by the pandemic.
Businesses, from all sectors, having made a reduction in sales of at least 20% in the latest twelve months compared to Pre COVID-19
- Lending max: FRW300 Million
- Interest Rate: 8%
- Tenor: up to 5 years(with a possible grace period of 3 years)
- BDF Guarantee Coverage: 50-75% (at BDF discretion)
- Lending Max: FRW 300 Million
- Interest Rate: Blended with your Participating Financial Institution (PFI)’s fund
– Facility amount below FRW300 Million will be at 8%
– Facility amount of more than FRW 300 Million will be blended ( 60% of the funding at 8% and 40% at the PFI’s commercial rate) - Tenor: up to 5 years (with an inclusive grace period of 1 year)
- BDF Guarantee Coverage: 50-75% (at BDF discretion)
- Lending Max: FRW 300 Million
- Interest Rate: Blended with your Participating Financial Institution (PFI)’s fund ( 60% of the funding at 8% and 40% at the PFI’s commercial rate)
- Tenor: up to 5 years (with an inclusive grace period of 1 year)
Refinancing Window- FRW37.5 Billion (Not open yet)
This window will support refinancing of existing loans in priority sectors determined by the GoR via MINECOFIN.
Get Started Today
Hatana – ERF2 is currently accessible through the following banks: NCBA, BPR Bank, RIM, Bank of Kigali, I&M Bank, GTBank, and Equity Bank
Are you a business Enterprise?
- Request letter indicating loan amount, owner’s equity contribution and total cost of the project (please send the letter alongside with all required documents)
- A detailed Business plan with company background, details of financial planning for the next 5-10 years including projections (income statement and cash flow projections); the borrower’s position in the industry, and the competitive environment/advantage, suppliers, reliability of supply, and terms of purchases; SWOT analysis.
- Bank statement for 1 year (for an existing business)
- Company’s Governance and Organizational structure/organigram
- Any partnership Agreement (if applicable)
- Details about transactions with owners or other members of management including amounts due to/or due from principals
- List of available collaterals and value
- Valuation reports of collaterals, in case of land or property
- Copy of shareholders IDs and the Managing director
- Copy of Memorandum or articles of association, and full company registration certificate
- Audited financial statements of 3 previous years and management accounts for 2021 (if not a startup)
- CV of the boards of directors and Management team of the business
- Updated tax clearance certificates for RRA and RSSB
- Proforma invoices of the equipment.
- Details of bank borrowings (initial amount, initial tenor, outstanding amount, outstanding tenor, repayment modalities) with other banks.
- Application is done by BRD or commercial banks, on behalf of the clients, after approvals of the ERF2 loan
- BDF conducts internal assessment and approves or rejects the requests
- Upon approval, a notification letter is sent to the bank which in return notifies their client
- The client agrees to the terms&conditions and pays the associated fee which 1% and/or 0.25% of the guarantee amount for special groups such as women, youth, veterans, etc. the fee is payable annually.
- The guarantee is solely based on BDF management discretion
Are you a Participating Financial Institution?
Complete and Submit An Application
- Application letter duly signed by authorized signatories of the bank, specifying the amount accompanied by an equivalent pipeline of the clients in specified priority sectors. (Refer to eligibility criteria per window)
- Online submission (through email) of relevant documents for BRD analysis i.e audited financial statements for the past three years, the corporate structure of the bank, biography of the senior and executive management of the bank, shareholding structure of the bank.
Notification Letter from BRD Details
- Upon approval by BRD management, a notification letter is signed by both parties; after which a participating agreement in the project is signed.
- The PFI submits a signed Board Resolution authorizing the MD/CEO to borrow the funds from BRD clearly stipulating the collateral to be pledged.
- PFI puts in place an ESMS -Environmental & Social Management System- Policy specifying the focal person as it relates to environmental and social issues. The bank’s ESMS is approved by the highest approving authorities of the bank. (click here to see guide)
- The PFI – Participating Financial Institution- requests disbursement of the amount ready to be disbursed to their respective clients.
- The disbursement request is accompanied by official documents from the PFI’s borrowers such as a signed term sheet/offer letter/loan agreement/application letter
- PFIs submit to BRD quarterly reports for the utilization and performance of the funds disbursed. (click here to see the template)
Note:
- Applications of PFIs are processed on a first-come-first-served basis.
- The PFIs have six months to deploy the funds to their clients, failure to which BRD might recall the non-disbursed amount within 30 days.
For more info about the project, please download it below
Hatana Team
Get in touch
BRD Head Office situated at Boulevard de la Revolution
Email: hatana@brd.rw
Web: https://hatana.brd.rw
In Partnership:
