Summary

This document provides training on agricultural finance, specifically outlining the services and support offered by FirstBank. It details the bank's approach to aiding agribusinesses, including developing business plans and providing advisory services.

Full Transcript

Agric Finance - First Academy We are… A team of dedicated Agric Finance Specialists supporting agribusiness clients in drawing up viable/bankable business plans, developing acceptable financing propositions and providing advisory services and agricultural project monitoring support. Providin...

Agric Finance - First Academy We are… A team of dedicated Agric Finance Specialists supporting agribusiness clients in drawing up viable/bankable business plans, developing acceptable financing propositions and providing advisory services and agricultural project monitoring support. Providing Financing to clients in the agricultural value chain - Input supply, primary production of crop and livestock, processing, logistics, trade etc In collaboration with leading development agencies and institutions i.e. USAID, GIZ, DFID, AFRACA etc, we provide agric financing support to eligible clients Our Mandate Liaising with Liaising with International Review & CBN and Joint client Market Development of Institutions & Monitoring of Ministry of Agric engagements intelligence and new agricultural Development the Bank’s & Food Security and regular industry initiatives and Agencies to agribusiness and other agrlc presentations updates deal structuring identify viable portfolio institutions Business Opportunities Our main focus is on corporate and commercial banking To make retail transactions attractive, obligors could be clients (annual sales turnover of >N3bn) in the agricultural grouped together (farmers groups and associations), the value chain. value chain must be clearly identified and fixed (i.e. the However, we still provide technical support to clients in the input, production/processing), and off-takers should be agricultural value chain that are in other BUs clearly identified to allow for water-tight structuring. Some Intervention Schemes ▪ N200bn intervention which provides low cost, long-tenored funds to large scale agricultural enterprises with minimum net asset base (excluding land) of N50m’ Commercial Agriculture 1 Credit Scheme ▪ Purpose: To fast track the development of agricultural sector. The scheme commenced in 2009 and would terminate in September 2025 ▪ Pricing: 9% all-in (CBN – 3%, PFIs – 6%) ▪ Special intervention fund of N300bn created by the CBN to unlock the potential of the real sector to engender output growth, value added productivity and job Real Sector Support creation. The scheme came into effect in 2015 and would expire in 2030 2 Facility (RSSF/DCRR) ▪ Target Sector: Manufacturing, Agriculture & Service sectors ▪ Pricing: 9% all-in (CBN – 2%, PFIs - 7%) ▪ The NESF provides loanable fund to the Participating Financial Institutions (PFIs), comprising Deposit Money Banks (DMBs) and Development Finance Institutions Non-oil Export 3 Stimulation Facility (DFIs), to access and on-lend to qualifying export-oriented enterprises. (NESF) ▪ Purpose: To reposition export and increase its contribution to economic development ▪ Pricing: 9% all-in (CBN – 2%, PFIs – 7%) 4 Conventional Term Loans, SRF & Overdrafts Product Definition Benefits Meets the needs of agricultural businesses seeking flexible and tailor-made funding for major expansion. Complements government’s efforts towards enhanced national food security and economic Credit facilities for medium development and large-scale agricultural businesses whose profile fall outside retail or special government intervention fund product specification Key Features Requirements Target Market » Maximum tenor of up to 5 years inclusive of moratorium as » No record of non-performing loans with any appropriate financial institution » Business plan including cash flow projection with Enterprises that are engaged » Collateral includes landed property with EFSV of 130% of facility assumptions, marketing plan, repayment plan, in agricultural/agro-allied limit, lien on assets/commodity being financed, all assets draw down schedule, Profit & Loss and Balance debenture on assets and Guarantee of Promoters/Directors for Sheet projections businesses (medium, large the bank’s exposure and registered/incorporated enterprises) » Customizable structure, tenure and transaction dynamics » Audited or management account for the past 3 financial years » Minimum single obligor limit of N10m » Title documents of property being pledged as security for the lending » Interest Rate Band: 20-24% (based on prevailing pricing) » Board Resolution authorising the borrowing Agricultural Loan Process Flow Prospect is identified and business calls conducted with Agric Finance Specialists Documentation is coordinated by the BU Relationship Team with the necessary sign offs obtained Request is forwarded to Head Office (CAP) for Screening and Management Approval Once onboarded on FinTrak, request flows to the relevant CAP team after input of Agric Finance Team Upon approval, Offer Letter is generated and forwarded to customer for execution Customer meets the conditions precedent to draw down as contained in the offer letter A request for funding is forwarded to CBN in the case of intervention funds Customer is allowed to draw the facility based on the agreed disbursement schedule Customer meets the conditions subsequent to draw down Monitoring visit is made to the customer/project site all through the life of the facility Customer commences loan repayment at the end of moratorium period 6 Thank you www.firstbanknigeria.com 46

Use Quizgecko on...
Browser
Browser