Step by Step guide to obtain funding for your business or project
We structure our financing through a mezzanine debt format. Mezzanine financing is an alternative source of growth capital that fills a funding shortfall where traditional lenders have a limited appetite to lend and where shareholders either lack sufficient cash equity to contribute or prefer not to dilute their existing shareholdings. Mezzanine debt is structured as a bullet loan that allows businesses to service only the interest component during the investment tenure, with the principal amount repaid as a lump sum at the end of the agreed term.
Our mezzanine financing solution is designed to support businesses seeking to: expand operations, undertake acquisitions, refinance existing debt, replace exiting shareholders, facilitate management buy-ins and buy-outs or acquire additional equity through a flexible funding instrument that is less dilutive and often more cost-effective than traditional equity financing. This structure allows shareholders to raise growth capital while maintaining operational control and preserving ownership.
We prioritize established businesses with a demonstrated history of revenue generation and operational performance. While we prefer companies with an annual EBITDA exceeding $500,000, we may consider businesses with lower or even negative EBITDA if there is a strong and well-supported case demonstrating the company's ability to meet its financial obligations.
Greenfield and early-stage projects may be considered when adequate risk mitigation measures are available, including: Corporate guarantees, Personal guarantees, Additional collateral, Pledged assets, Contractual receivables.
We consider opportunities across most sectors, including: Manufacturing, Healthcare, Logistics and transportation, Technology, Renewable energy, Infrastructure, Trade and export, Agribusiness and value-added agriculture. We generally avoid highly volatile commodity-dependent businesses, including primary mining and primary agriculture.
Businesses must operate within Africa. Transactions involving applicants that are not directly operating within Africa may be considered on an exceptional basis where the applicant holds shares in an African enterprise or where the transaction is supported by an African-based corporate guarantor. In such cases, a formal guarantor agreement shall be required.
Investment size: $500,000-$50 million.
Structured as a subordinated interest-bearing loan, with the option to convert an agreed portion of the outstanding debt into equity after a minimum of two years of demonstrated and satisfactory interest repayments, subject to a mutually agreed valuation.
Tenor: remains flexible and is determined through mutual agreement based on the current stage, nature, and financial requirements of the project or business.
Grace period: of up to two (2) years from the date of disbursement may be granted.
Pricing: Risk-adjusted interest rates determined by company-specific factors, industry exposure, country risk, projected cash flows, and available security.
Back-ended repayment profile: Only interest payments are serviced during the investment tenure, with certain interest deferrals permitted where appropriate, while the principal amount is repaid through a bullet payment upon maturity.
Investment Security: To safeguard both the investor and the recipient, every investment is required to be covered by insurance against political instability and force majeure events. Accordingly, the recipient receives the approved funding amount less 2%, which is applied towards securing the required insurance cover prior to or upon disbursement.
Equity Conversion: An option to convert a negotiated portion of the outstanding debt into equity after at least two years of satisfactory interest servicing, subject to a mutually agreed valuation.
Download the Investment Funding Application Form here , complete it accurately, and sign it before submission.
Email the signed application form to funding@banamexinvestmentslimited.com .
Please attach the following supporting documents:
Your application will undergo an internal review. If it meets our investment criteria, a Tentative Term Sheet will be issued outlining:
You may accept the proposed terms by signing and returning the term sheet, or negotiate the terms before proceeding.
Once the term sheet has been agreed upon, both parties will execute the final Disbursement Agreement, confirming all agreed investment terms and conditions.
Following execution of the Disbursement Agreement and fulfillment of all pre-disbursement requirements, funds will be disbursed to the recipient's designated bank account within seven (7) working days.