STOCKING FACILITY
This
facility is available to assist manufacturing exporters to have
adequate working capital to stock local raw materials that are mainly
seasonal in nature, and achieve optimum levels of production all
year round. This facility is made available either in local currency
to exporters through their bankers and is available for a maximum
term of one year, at a fixed rate determined by NEXIM.
Exporter
The
exporter must be a creditworthy limited liability company, cooperative
society, existing/new production units with a minimum of 50% export
orientation or an existing provider of export services. The exporter
must establish that the loan will develop or expand his export business.
Participating Bank
Banks
wishing to participate under the facility must be in good financial
health as evidenced by three years Audited Accounts, and meet additional
criteria set by NEXIM from time to time.
Warehousing
Only
warehouses acceptable to NEXIM will be eligible to store the raw
materials financed under the facility. Warehouse warrants shall
state very clearly the firm storing the goods, account for which
the goods are being stocked, date of receipt, quantity, description
and market value. These become applicable where the manufacturer
does not have own storage facilities acceptable to NEXIM.
Collateral
Requirements
Since
the participating bank is assuming the credit risk, it is expected
to secure its lending. Therefore the security arrangements will
be agreed with the exporter.
Documentation
Application
The
Participating Bank shall forward an application duly signed by at
least two authorised signatories of the Bank on behalf of the exporter
stating clearly the commodity to be stocked, quantity and quality,
source, and price of procurement. Information on installed and existing
production capacity of the exporter must be provided. The following
documents must also accompany the application:
•
Return on export finance portfolio
• Schedule of stock utilisation
• Copy (ies) of export contract(s)
• Bill of exchange duly accepted by the exporter
Disbursement
Upon
approval, the facility is disbursed to the participating bank either
enbloc or in tranches as the case may be. The following documents
are to be provided for this purpose by the participating bank:
•
Promissory Note
• Irrevocable Transfer Order
• Letter of Undertaking from the Bank that if the exporters
stock reconciliation record is unacceptable to NEXIM, then NEXIM
can exercise the right to recover the facility before its due date
with penal charges.
Post-disbursement
The Bank shall submit to NEXIM the following documents:
a) Copies of warehouse warrants for the items stocked (where applicable)
b) Copy of insurance certificate for the items stocked against fire
and burglary, etc
c) Letter of hypothecation by which ownership of the stocks is transferred
to the sponsoring bank
d) Monthly stock reconciliation
Other
Aspects
•
NEXIM shall visit the exporter's warehouse to confirm that stocks
conform in description, quantity and quality with the documents
submitted to it by the participating bank.
• Any bank or exporter that utilize the facility contrary
to the agreed/established condition may be blacklisted from further
participating in the facility and subsequent breach may lead to
being barred from other NEXIM's facilities.
• NEXIM shall have the prerogative to review this guideline
from time to time.
For
further information please contact:
Marketing
Division - Project 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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