Danida Business Finance contributes to sustainable and transformational change in developing countries in line with the Sustainable Development Goals by softening the terms of commercial loans for investments primarily in public infrastructure. The below core principles form the foundation of DBF project identification and selection.
Core principles for project selection:
- DBF is available in developing countries with GNI per capita below USD 4,035 and with a Danish representation.
- Projects shall address at least one of the UN Sustainable Development Goals.
- Projects in sector with Danish core competencies will be prioritized.
- All projects shall be tendered. If there are sufficient Danish suppliers, the bidding will be limited to those.
- The minimum contract amount to be financed is DKK 100 million.
- The Ministry of Finance or a solid bank in the recipient country is required to act as borrower/guarantor.
- Projects will be assessed on sustainability criteria, including IFC performance standards and UN guiding principles for business and human rights.
- Projects should be based on local demands and needs and be reflected in national development strategy and sector plans.
For more details on the rules and requirements, please refer to Rules and Guidelines.