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. In 2011, the unprecedented decision by the 15 NORSAD Member Countries and Governments was made to transform the multilateral entity into the limited liability company now based in Gaborone, Botswana.
What products does Norsad offer?
We offer long term investment loans, mezzanine and equity financing to Southern African growth companies and financial institutions.
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 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 and 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 is USD 2 million. Norsad financing varies from USD 2 million to USD 13 million.
Does Norsad finance start-ups?
Norsad finances both start-up/greenfield and expansion investments. From the promoters and management of a greenfield project, we require a strong recorded track record from similar operations.
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. However, 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 Contacts.
Does my project have to be in Botswana?
NO, we finance viable projects in the SADC region.
Can Norsad take a majority stake in my business?
In exceptional cases where we participate in the form of equity, we take up to a maximum shareholding of 25%. When participating with mezzanine and debt instruments, we prefer to have sufficient risk taking from the equity holders and risk sharing with other financiers, especially in larger investments.
Does Norsad finance acquisitions?
We do consider acquisitions in cases where there are opportunities for expansion investments that create or sustain jobs and have positive development impact in the local economy and surrounding society. We can also provide mezzanine financing for acquisitions.