Being an investment and development bank; our thinking has always been in the long term. The new structure of the Palestinian Banking Corporation includes department of Equity Advisory Management. The purpose of this department is equity participation in potential projects with effective development impact on the Palestinian economy. This new operation has been launched to respond to basic development needs of private sector companies in terms of finance and capital structure.

The main purpose of equity financing is to strengthen the capital base of firms in the productive and services sectors by injection of equity capital (acquisition of direct shareholdings) or quasi-equity (convertible bonds, investment certificates or other similar instruments such as participating loans or temporary holdings with a remuneration linked to the results of the company and a negotiated exit price formula).

PBC can offer its clients custom made packages of finance and can play a leading role in estimating project cost, structuring the financing scheme, and in mobilizing the necessary fund. PBC can participate in equity financing according to the following terms:

• Amount of allocation: The amount of allocation in each investment project may not exceed 25% of the total investment cost and 50% of the project equity capital.
• Initial Fees: For each investment allocation, investor has to pay an initial fee of 5% added to the amount of the allocation. This fee is to cover the cost of studying and evaluating the investment project.
• Sectors Eligible for Financing: We are interested in projects that have effective development impact and improve the competitiveness of the Palestinian economy. All projects in the productive, services and tourism sectors including establishment, expansion and restructuring are eligible for financing.
• Eligible Financing Transaction and Participation: Purely financial transactions are excluded. The equity participation to be financed should normally be linked to finance the establishment or expansion of capital investment. In calculating the cost of the project, all expenditures directly related to a fixed asset (land, building, machinery and equipment, research and development, fixed working capital portion, know how, patents, training, etc.) can be taken into account, provided that it is essential in order to achieve the economic goals of the project.
• Exit Strategy: PBC’s preferred exit strategy is to do so under circumstances that are advantageous to the investors. PBC investment may last for a maximum period of 7 years.
• Submission of the Investment Proposal: Investment proposals should normally be submitted before completion of the projects in question. The relevant operations must not normally have been completed more than six months prior to their submission to the bank. Investors looking for PBC equity investment to establish new businesses or expand an existing business operation can submit an investment proposal directly to PBC.

• Download MSWORD Investment Proposal
• Download PDF Investment Proposal
• Financing and Loan Applications are accepted only through our area Loan Officers. For inquires and applying for financing please consult our Loan Officer in your area.