Frequently Asked Questions

What is Norsad Finance?

Norsad is a Southern African impact investor with Nordic roots. The institution started operating in 1990 as a Nordic-SADC multilateral entity based in Lusaka, Zambia. By 2012, the institution was transformed into a limited liability private company now based in Gaborone, Botswana.

 

What products does Norsad offer?

We offer long term flexible and customized financing solutions which include Mezzanine Finance, Tier II and Credit Facilities to financial services providers and Secured / Senior Debt to medium-size businesses.

 

Which companies are funded by Norsad?

Norsad participates in a wide range of sectors. However, the company does not provide funding to companies that are active in the sectors stated in the Norsad Exclusion List, as well as any venture which has adverse social and environmental effects. Norsad pays special attention to the positive development impact the financed company has in the local economy and surrounding society.

 

What is the pricing of Norsad facilities?

Pricing on facilities is market-based and determined on a case by case basis. It is also dependent on the level of risk related to the sector, country and the individual company.

 

What is the minimum amount of financing that can be provided?

The minimum amount of financing provided by Norsad is USD 2 million.

 

What is the maximum amount of financing that can be provided?

The maximum amount of financing directly provided by Norsad is USD 13 million. However, we can attract additional funding from our partners and can facilitate co-financing with other funders.

 

Does Norsad finance start-ups?

Norsad prefers expansion investments, but can finance start-up/greenfield investments. From the promoters/management of a greenfield project, we require a strong track record from similar operations. We would also seek sufficient risk capital from the equity holders.

 

Does Norsad provide local currency financing?

We can consider select medium term local currency financing in South African Rand or Botswana Pula. Other such considerations can be accommodated where adequate foreign exchange hedging is available.

 

How do I access funding from Norsad?

We encourage prospective clients to contact us at an early stage of developing their project plans to get our advice on information and assessments needed to fulfil the eligibility criteria for Norsad financing. We do not have standard application forms and potential customers are advised to contact Norsad Finance’s investment professionals. You will find contact information of the investment professionals from Our Team profiles alternatively you can use the details on the Contact page.

 

Does my project have to be in Botswana?

No. We finance viable private sector projects across the SADC region - Angola, Botswana, DRC, Lesotho, Madagascar, Malawi, Mauritius, Mozambique, Namibia, Seychelles, South Africa, Swaziland, Tanzania, Zambia and Zimbabwe.

 

Can Norsad take a majority stake in my business?

Norsad does not seek ownership in businesses. In exceptional cases where we participate in the form of equity in conjunction with a mezzanine investment, we can take up to a maximum shareholding of 25%.

 

Does Norsad finance acquisitions?

We can provide mezzanine financing for acquisitions. We prefer acquisitions where there are opportunities for further expansion investments that create or sustain jobs and have positive development impact in the local economy and surrounding society.