NATIONAL DEVELOPMENT BANK

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NATIONAL DEVELOPMENT BANK

• FACILITIES PROVIDED BY THE NATIONAL DEVELOPMENT
  BANK

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• NATIONAL DEVELOPMENT BANK IS A DEVELOPMENT
  FINANCE INSTITUTION OWNED 100 BY BOTSWANA
  GOVERNMENT.
• THE BANK PROVIDES LOANS TO PROJECTS THAT PROMOTE
  THE ECONOMIC DEVELOPMENT OF BOTSWANA.

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• NDB CURRENTLY DOES NOT OPERATE CURRENT ACCOUNTS,
  DEPOSIT ACCOUNTS AND FOREIGN EXCHANGE ACCOUNTS.
• THE BANK CURRENTLY IS NOT ENVOLVED IN EQUITY
  PARTICIPATION OF VENTURE CAPITAL OPERATIONS.

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• NDB FINANCES AGRICULTURAL, COMMERCIAL, PROPERTY
  DEVELOPMENT (COMMERCIAL, INDUSTRIAL AND
  RESIDENCIAL COMMERCIAL PROPERTY), INDUSTRIAL AND
  TOURISM PROJECTS.
• NDB ALSO OFFERS PERFORMANCE BONDS.

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• AMONG OTHER FINANCING PARAMETERS NDB IS
  ENCOURAGED TO FINANCE PROJECTS THAT CREATE
  EMPLOYMENT, ADD VALUE TO LOCAL RAW MATERIALS,
  EXPORT ORIENTED, SUBSTITUTE IMPORTS AND TRANSFER
  TECHNOLOGY TO BOTSWANA.

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• THE BANK CAN FINANCE PROJECTS UP TO A PERIOD OF
  15 YEARS.
• THE RATE OF INTEREST CHARGED DEPENDS ON THE
  PROJECT RISK PARAMETERS, PAST REPAYMENT RECORD
  AND TYPE OF PROJECT TO BE FINANCED.
• RATES VARY FROM PRIME LESS 2 TO PRIME PLUS 4
  MARGIN (FIXED OR FLOATING).

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• NDB WOULD LIKE INVESTORS TO SHARE IN PROJECT
  FINANCING BY PUTTING IN CONTRIBUTION OF MINIMUM
  25 (CASH OR IN KIND). DO NOT BELIEVE YOU DO NOT
  HAVE CONTRIBUTION UNTIL YOU HAVE DISCUSSED WITH
  THE BANK (MANY CUSTOMERS UNDER ESTIMATE THEIR
  CONTRIBUTION, ESPECIALLY WHEN IT IS IN KIND).
• NDB TAKES GRANTS OFFERED BY ANY PARTY AS
  CONTRIBUTION FOR THE BENEFIT OF INVESTORS.
  HOWEVER INVESTORS WILL STILL HAVE TO PUT IN
  MINIMUM EQUITY TO DEMONSTRATE COMMITMENT TO THE
  PROJECT.

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• THE BANK ENCOURAGES MANUFACTURING CONCERNS AS
  THEIR BENEFITS TO THE SOCIETY ARE MORE LONG TERM
  AND NORMALLY ADD MORE VALUE TO INPUTS.
• IN ASSESSING THE PROJECT PROPOSAL NDB TAKES INTO
  ACCOUNT FINANCIAL VIABILITY, AVAILABILITY OF
  MARKET, GOOD MANAGEMENT, SECURITY, CASH FLOW,
  AVAILABILTY OF RAW MATERIAL AND OTHER PARAMETERS
  OF IMPORTANCE.

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• THE BANK FINANCING COVERS ALL BUSINESS
  REQUIREMENTS. FINANCING FOR WORKING CAPITAL,
  MACHINERY EQUIPMENT, LIVESTOCK IN ITS VARIOUS
  FORMS, LAND AND BUILDINGS.
• THE BANK ALSO FINANCES THE PURCHASE OF EXISTING
  BUSINESS PREMISES AND RELATED ASSETS CONSIDERED
  CRITICAL TO RUN THE OPERATION.

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• NDB FINANCES LEGALLY REGISTERED ENTITIES
  (COMPANIES, PARTNERSHIP ETC), INDIVIDUALS, AND
  OTHER SIMILAR ENTITIES.
• THE ENTITIES THAT THE BANK PROVIDES LOANS TO
  SHOULD BE REGISTERED IN BOTSWANA. HOWEVER
  SHAREHOLDERS NEED NOT BE BATSWANA.
• CURRENTLY BANK LOANS RANGE FROM P20,000 TO P60
  MILLION. THIS FIGURES ARE SUBJECT TO REVIEW FROM
  TIME TO TIME. THE UPPER LIMIT HAS BEEN GROWING.

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• THE BANK HAS FORMAL LOAN APPLICATION FORMS, WHICH
  NEED TO BE FILLED WHEN INVESTORS APPLY FOR A
  LOAN. HOWEVER INVESTORS ARE ALSO ENCOURAGED TO
  SEND IN THEIR BUSINESS PLAN(S).
• THE BANK CONTINUES TO REVIEW APPLICATION FORMS TO
  MAKE THEM USER FRIENDLY, BUT CAPTURING IMPORTANT
  INFORMATION FOR APPRAISAL PURPOSES.

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• THE BANK REQUIRES SECURITY FOR LOANS FINANCED.
  HOWEVER OVER THE YEARS THIS HAS NOT BEEN A MAJOR
  PROBLEM AS NDBS PRIMARY SECURITY WILL BE ASSETS
  IT HAS FINANCED.
• NDB WOULD LIKE TO RESPOND TO MARKET CHANGES, AS
  SUCH THE BANK IS LIKELY TO COVER SOME AREAS IN
  FUTURE, WHICH TRADITIONALLY WERE OUTSIDE OUR
  CURRENT SCOPE OF OPERATION.

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• GIVEN THE ABOVE IF THE INVESTOR HAS A PROJECT IN
  MIND, IT IS ALWAYS BETTER TO ASK FOR INFORMATION
  FROM ONE OF OUR BRANCHES.
• THE BANK IS ALSO INVOLVED IN OTHER SCHEMES SUCH
  AS THE AGRICULTURAL CREDIT GUARANTEE SCHEME
  OTHERS
• LET ME ALSO TAKE THIS OPPORTUNITY TO BRIEF YOU ON
  OTHER PRODUCT(S) WE ARE CURRENTLY DOING (E.G
  NTLHATLOSA KWA MORAKENG).
• WE VALUE ALL OUR CUSTOMERS.

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• NDB OFFICES ARE LOCATED IN THE FOLLOWING AREAS.

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• NOW FEEL FREE TO ASK QUESTIONS
• PLEASE REMEMBER THAT WE HAVE MORE INFORMATION ON
  OUR INFORMATION BOOKLET.
• THE END