General Information
The mission of the Belgian Investment Company for Developing Countries (BIO) is to promote the creation of a strong private sector in developing and/or emerging countries, to enable them to gain access to sustainable development and lasting social prosperity and thus reduce poverty. BIO invests directly in private sector projects and thus makes a structural contribution to the socio-economic growth of those host countries. According to its governing principles it can operate in Asia, Latin-America and Africa, in countries listed in the OECD-classification of least developed countries, low-income countries and countries with an average income-lower category. BIO’s strategy is built around three cornerstones:

1. Intermediary financial structures
BIO can support microfinance institutions, commercial banks, non-bank financial institutions, SME and microfinance investment funds for amounts up to a maximum of 5% of BIO’s means per project. These operations can be executed in €, $ or local currency.

2. Enterprises
BIO can invest directly in local SMEs and larger corporations with a maximum amount of respectively € 1.000.000 and € 5.000.000 per project, in €, $ or local currency.

3. Capacity Building Fund
This Fund provides grants to co-finance feasibility studies, up to a maximum of 50% of their total cost. The maximum grant available is € 100.000 and these subsidies are non-refundable.

BIO can also provide subsidies for technical assistance programmes (training, technology transfer, etc.) upon request of its investee companies, to help them achieving their objectives.

BIO uses a series of financial tools designed to contribute to the expansion of existing organisations or to help companies to set up in business. These investments can be made in Euros or in US dollars but also in local currency, on a case by case basis.



Instruments:
Equity and quasi-equity

New companies or those who wish to expand their activities or strengthen their financial base can benefit from BIO’s support in the form of a direct equity stake or via financial institutions. BIO always takes a minority stake, generally tied to a seat on the Board of Directors, meant to be ceded to other shareholders, third parties or on the financial market once the company has reached a sustainable maturity level.

BIO also uses quasi-equity (mezzanine, subordinated loans, convertible loans, etc.) to strengthen the financial resources of up and coming companies, without diluting the position of its shareholders.

Loans

BIO offers a broad range of direct medium and long term loans at both fixed and variable rates. Their term can vary between 3 and 10 years, with a grace period of 3 years maximum.

Guarantees

BIO’s signature is a guarantee of solvability and facilitates the mobilisation of resources by private sector borrowers by guaranteeing certain obligations on their behalf.

Grants

Finally, BIO provides grants for feasibility studies prior to an investment or technical assistance necessary for the success of a project. These amounts are non–refundable.