APPLY NOW: CBN INTERVENTION FUND

CBN INTERVENTION FUND
CBN INTERVENTION FUND

N235 BILLION CBN INTERVENTION FUND FOR MANUFACTURING RE-FINANCING AND RESTRUCTURING FACILITIES OF BANKS’ LOANS

Objectives of the Fund
The objectives of the Fund are to:
i. fast-track the development of electric power projects, especially in the
identified industrial clusters in the country;
ii. fast-track the development of the aviation sector of the Nigerian economy by
improving the terms of credit to Airlines;
iii. improve power supply, generate employment, and enhance the living
standard of the citizens through consistent power supply;
iv. provide leverage for additional private sector investments in the power and aviation sectors.

CBN INTERVENTION FUND
CBN INTERVENTION FUND

2. Managing Agent /Technical Adviser (TA) / Participating Banks
i. Managing Agent: Bank of Industry (BOI), responsible for the day to day
administration of the Fund
ii. Technical Adviser: Africa Finance Corporation (AFC), the TA to the Fund.
iii. Participating Banks: All Deposit Money Banks and Development Finance
Institutions (DFIs) excluding the Bank of Industry (BOI).

3. Types of Facilities
i. Long term loans (for new Power Projects)
ii. Refinancing of existing loans (Power and Airline Projects)
iii. Refinancing of existing leases (Power and Airline Projects)
iv. Working capital (for existing Power and Airline Projects only)
v. Refinancing of Aircraft Hangar projects.
4. Amount / Tenor
i. The Fund facility shall not be more than 70 percent of the total cost of the project.
ii. The Fund loans shall have a maximum tenor of 15 years as determined by the
project’s cash flow profile not exceeding 31st July 2025.
iii. Working capital facility shall be of one-year duration with provision for roll-over but
not more than 5 years.
iv. The Fund allows for moratorium in the loan repayment schedule.
v. The moratorium on principal shall depend on the type and nature of the project and
shall not exceed either the construction period of the project

Application Procedures For The N235 BILLION CBN INTERVENTION FUND FOR MANUFACTURING RE-FINANCING AND RESTRUCTURING FACILITIES OF BANKS’ LOANS

CBN INTERVENTION FUND
CBN INTERVENTION FUND

i. Submission of Requests
A PB shall submit a request, on its behalf or on behalf of other parties in the case
of syndication or other arrangements, in the prescribed format on behalf of the
project promoters. In the case of syndication or other arrangements, BOI shall
deal directly with the lead bank only on all issues relating to such application.
ii. Required Documentation Each request must be accompanied by the following documents:
i. Request from the project promoter seeking such loan and/or
refinancing/restructuring;
ii. Last 3 years financials of an existing company;
iii. Feasibility study/business plan of the project;
iv. Relevant permits/approvals;
v. Off-take and other relevant agreements;
vi. Environmental impact assessment report;
vii. Copies of duly executed offer documents between the bank and
the company evidencing existence of a facility in the case of
refinancing; viii. Six (6) months account statements showing the current exposure (if any); ix. Certificate of incorporation evidencing the incorporation of the
company with the corporate affairs commission; and
x. List of directors of the company (form co7) xi. Other documents as may be required by the TA to facilitate the appraisal process.

iii. Approval Process for The N235 BILLION CBN INTERVENTION FUND FOR MANUFACTURING RE-FINANCING AND RESTRUCTURING FACILITIES OF BANKS’ LOANS
The recommended applications that have fulfilled all the laid down criteria
shall be forwarded to the Management of the Central Bank of Nigeria for
final approval

iv. Security to be offered by PBs
The following securities shall be offered:
i. The security to be provided by PBs to BOI shall be a bank guarantee
backed by a payment order for the PB’s account to be debited by the
CBN for any amount due should the PB default.
ii. Legal agreement between BOI and PB for BOI to have the rights to
realize security pledged by project promoters.
iii. BOI to have lien on the project cash flows.
iv. A deed of assignment of the assets of the project in favour of BOI

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Approval Process
The recommended applications that have fulfilled all the laid down criteria shall be
forwarded to the Management of the Central Bank of Nigeria for final approval.

N300 BILLION CBN POWER AND AIRLINE INTERVENTION FUND (PAIF)

 The objectives of the Fund are to:

  • Fast-track the development of electric power projects, especially in the identified industrial clusters in the country;
  • Fast-track the development of the aviation sector of the Nigerian economy by improving the terms of credit to Airlines;
  • Improve power supply, generate employment, and enhance the living standard of the citizens through consistent power supply;
  • Provide leverage for additional private sector investments in the power and aviation sectors.

 

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