Redeemable Preference Capital Facility | Kenya Development Corporation

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Facility Objective	To provide long-term, structured quasi-equity capital through subscription to preference shares in commercially viable enterprises that require capital strengthening without immediate dilution of control or excessive debt burden.
Investment Purpose	The equity proceeds may be used for business expansion and diversification, financing investment startups and innovations, or for balance sheet restructuring in special circumstances to improve leverage ratios of existing KDC clients.
Target Market	Medium and large enterprises in KDC's sectors of focus Growth stage SMEs seeking capital without dilution of control Strategic start-ups with scalable business models Businesses requiring long-term capital not suitable for traditional debt
Facility Structure	Preference share capital offers a lot of flexibility in structuring to suit investor needs and the corporation's requirements, including Redeemable Preference Shares, Cumulative Preference Shares, Convertible Preference Shares, etc.
Investment Amount	Minimum Kshs 10 million
Investment Horizon	Up to 10 years
Key Requirements	Legal status: Must be a registered business in Kenya. Operational track record: At least 3 years of operations for expansions and diversification. Banking & compliance: 12 months bank statements, financial, commercial and technical viability with ability to scale and predict cashflows. Reasonable leverage levels. Clear valuation model or comparable analysis. Defined exit strategy.

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