SPECIAL CASSAVA EXPORT CREDIT
FACILITY
Following
the establishment of the Presidential Initiative on Cassava Export
Promotion by Mr. President in February 2004, NEXIM was selected
as a key member of the Sub-Committee on Finance & Export Proceeds
Repatriation and specifically requested to support the initiative.
To this end, the Management of NEXIM considered and consented to
the establishment of a Special Cassava Export Credit Facility to
allow for direct disbursement of approved loans to qualified exporters
of Cassava Products.
Eligibility
The
exporter must be a registered creditworthy export Company/Cooperative
Society provided that such Company/Cooperative Society is incorporated
in Nigeria and meets other statutory requirements to be availed
the facility. The applicant must establish that the loan will develop
or expand its cassava export business.
Collateral
Requirements
In
addition to the commodity being used as collateral through the use
of reputable Collateral/Warehouse managers, the Bank shall also
secure the facility through one or a combination of the following:
- Assignments
of the underlying export receivables to NEXIM.
- First
legal charge on export item (stock).
- Personal
and Several Guarantees of the Promoters and sponsors.
- Guarantee
of the National Association of Cassava Exporters of Nigeria.
- Any
other collateral, as may be determined by the Bank from time to
time.
Documentation
Application
In addition to the requirements under the eligibility criteria,
a company/cooperative society seeking to benefit from the facility
shall forward a formal application to NEXIM accompanied by the following
documents:
- Copies
of the Certificate of Incorporation.
- Copies
of Memorandum and Articles of Association certified by the Corporate
Affairs Commission (CAC);
- Forms
CO2 and CO7 certified by the CAC;
- Audited
Accounts for the last three (3) years and the most recent Management
Account, where available;
- A
Board resolution of the Company/Cooperative Society to borrow
from NEXIM;
- A
letter from applicant authorising NEXIM to obtain any information
about the Company/Cooperative Society;
- Pro-forma
invoice(s)/contract orders;
- Full
details of any facility obtained elsewhere, including collaterals,
liens, etc;
- Registration
with the NEPC;
- Duly
executed authorised signature mandate cards;
- Any
other as may be required by NEXIM.
Disbursement
NEXIM
shall disburse approved funds upon fulfillment of all conditions
precedent to draw down. Disbursements shall be as agreed between
the beneficiary and NEXIM. NEXIM shall support each transaction
presented under this window up to 80% of the Naira equivalent of
the cost of executing the underlying export order.
Other Conditions
-
NEXIM shall undertake periodic visits to the beneficiary companies/cooperative
societies to ensure adherence to the conditions of the loan.
- NEXIM
reserves the right to recall the loan if the exporter is found
not to have complied with the set conditions during monitoring.
- All
beneficiaries of the Cassava Facility shall be required to submit
monthly declarations of performance of export contracts and repatriation
of proceeds to NEXIM.
For further information please contact:
Marketing Division - Trade Finance
Nigerian
Export – Import Bank
NEXIM HOUSE
Plot 975 Cadastral Zone A0,
Central Business District,
PMB 276, Garki,
Abuja, Nigeria.
Phone:
(+234) 9 524 1630 -9 Fax: (+234) 9 524 1640
E-mail: neximabj@neximbank.com.ng
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