Equity Financing

The Productive Sector Equity Fund is a source of equity financing established to assist in the development and expansion of the productive sectors of Saint Lucia. Productive sectors are defined as those which generate output, employment and foreign exchange and include tourism, agriculture (including fisheries and livestock), industry and other services. 

 

The Fund makes equity and quasi-equity investments in start-up and financially restructured yet feasible productive sector projects in the form of ordinary and cumulative preference shares.  Beneficiaries pay annual dividends to the Fund and establish a sinking fund for the redemption of the shares at the end of the term.  

 

Basic operating guidelines of the Productive Sector Equity Fund include:

 

  • Investment in any single entity to a maximum of  $750,000
  • The investment in any project shall be no more than 40% of the total equity in the project
  • Majority owners and/or managers must have at least 51% of the equity in the project
  • Investments shall usually be for a period of six (6) years to ten (10) years