The Bank’s financing spurs startups in priority sectors of the economy; and most are not highly capitalized hence the need for BRD to acquire equity stock in the firm as opposed to debt financing. By securing a monetary investment in the entity the bank becomes a part owner of the business.
The Bank provides equity participation in any company provided it does not exceed 25% of the company’s portfolio (with exceptional cases when the company is owned by BRD 100% as a subsidiary). However, the Bank has an exit plan at the maturity of the firm.
In line with its vision to be a financier of development, the Bank intervenes in the Capital Market not for profit making but to meet its mandate of stimulating development of the Rwandan economy.