About/Description of Institution

The Caribbean Development Bank is committed to helping Borrowing Member Countries reduce inequality and halve the incidence of extreme poverty by the end of 2025, through supporting inclusive and sustainable growth and promoting good governance.

Collateral/Security requirements

fixed assets, land, trust

Debt to equity requirements

Not more than 4 times for Development Financial Institutions (DFI)

Repayment Period

Variable, up to 14 yrs

Repayment Terms

Loan terms for DFIs FINANCIAL COVENANTS • Risk Weighted CAR not less than 12.5% • Equity to Assets Ratio not less than 10% • Return on Average Assets (ROAA) at least 1% • Return on Average Equity (ROAE) at least 5% • Interest Coverage Ratio at least 1.5 times • Unsatisfactory assets (NPLs) in the portfolio shall not exceed 5% • Collateralisation Ratio not less than 1.1 times • Debt to Equity Ratio not more than 4 times Loan terms for private sector direct borrowers (a) Contribution to Project Costs: In the case of direct lending to private sector projects, the proportion of project costs financed by CDB shall be restricted to not more than 40%. (b) Grace Periods: Grace periods are determined on the basis of the project’s projected cash flow and the borrower’s ability to repay from other sources, but in any case will not exceed five years. (c) Maturity: The maximum maturity of loans, inclusive of the grace period, is determined on the basis of the project’s expected cash flow and the borrower’s ability to pay from other sources but, in any case, will not exceed 14 years for direct private sector borrowers.

Other terms and conditions

case by case analysed