Grameen Fund wishes to adopt a pragmatic approach in extending financial assistance. However, it accords priority to a small scale industry, if it has the following features:
GF may join in equity participation in the project/enterprise financed by other banks and financial institutions when invited provided that they meet the Fund objectives. Generally, Fund prefers to take on 51% of the equity in a project. In older companies needing finances for new product development or expansion, lower equity ratio may be accepted if so desired by the Board of Directors of GF.
GF would like to participate in the management of a venture company which is funded to ensure that the company operates proficiently and the project activities follow the business plan.
GF aims at divestment of its shares within 5-7 years through public floatation. Where public listing is not possible the other partners can have first option to buy the Grameen shares either in full or partially.
Grameen Fund's participation in a project simultaneously through equity and loan financing will be generally discouraged but for early completion of project bridge loans may be provided. The company in that case will borrow fund from other commercial banks and adjust the bridge loan given by the Fund.