Export Development Facility (EDF)

1. Improve access of exporters to concessionary finance to expand and diversify the non-oil export basket;
2. Attract new investments and encourage re-investments in value-added non-oil exports production and also promote non-traditional exports;
3. Revamping / Resuscitating export-oriented industries to create / sustain more jobs within the non-oil exports sector in Nigeria;
4. Support the Bank's beneficiary clients to upscale operational capacities and upgrade production systems to enhance competitiveness as well as expand their export operations and capabilities;
5. Diversify and increase the level of contribution of non-oil export revenue and value-added exports for sustainable economic development; and
6. Broaden the scope of export financing instruments and to complement other non-oil export financing schemes.

Export-oriented enterprises shall be eligible under the EDF, as follows:

1. Duly registered/incorporated in Nigeria.
2. Commercially viable and have relationship with established counterparties and contracts with verifiable export off-takers.
3. With satisfactory credit reports obtained from at least two (2) Credit Bureau (in line with the provisions of the CBN Circular BSD/DIR/GEN/CIR/04/014 dated April 30, 2010).
4. Projects in sectors that impact women and youth employment / projects with deliberate focus on women / youth empowerment programmes in the export value chain.
5. Projects with regional export promotion / export development objectives and / or promoted by States as a private sector export enterprise.

Exporters

Be duly incorporated/registered in Nigeria as limited liability companies or cooperative societies (manufacturing, trading or service companies).

1. It produces goods/services for direct export.
2. It uses at least 60 per cent (by value) of local raw materials or intermediate goods/services produced in Nigeria for its products, or the local value added of its products exceeds 50 percent.

Any commercial bank acceptable to NEXIM Bank.

Eligible transactions under the EDF shall include:

1. Transactions associated with export of goods wholly or partly processed / manufactured in Nigeria;
2. Transactions relating to export of commodities and services, which are exportable under the laws of Nigeria;
3. Transactions of specific projects, established for the production / supply of inputs towards the purpose of manufacturing / packaging for export;
4. Transactions of value-added production supported by States/Regions and promoted by Private Sector Companies.

Obligor Limit

The total cost of the project or transaction, shall be subjected to a maximum of the Bank's single obligor limit.

Tenor

The EDF shall have a maximum tenor of up to 9 years. Working capital financing shall be for a maximum tenor of one year with the option of roll-over not exceeding twice on transactions, with transaction to be supported with a medium-term contract arrangement with credible counter parties acceptable to the Bank.

Repayment

Repayments of principal components of the loan under this facility shall be in semi-annual instalments after the moratorium period, not exceeding 2 years.

Moratorium

1. The EDF allows for moratorium on principal repayment. This shall however be project specific and not exceed two (2) years during the implementation or construction phase of the project.
2. Additional moratorium period of twelve (12) months may be added to the initial moratorium period in the event of completion delays at a negotiable restructuring fee, subject to a maximum of 0.25% flat rate.

Interest Rate / Margins

The Facility shall be availed at a maximum interest rate of 9% per annum. However, legal charges are to the account of beneficiary projects.

Interest During Project Implementation / Construction

Interest charges during implementation – construction / resuscitation phase of projects shall be dependent on the status and structure of the project. They shall be categorized as follows:

• Capitalization of Interest - interest accruable for capitalization during the moratorium period.
• Pre-funding of Interest - interest payable during implementation / construction from a pre-funded Project Implementation / Debt Service Account. The amount or interest payable shall be added to the total project cost.

All PB's are expected to fully secure their lending. The types of security acceptable to NEXIM shall include but not limited to the following:

• Promissory Notes/Irrevocable transfer Orders for the amount of the facility suitably drawn.
• Fixed and/or floating charge over all assets of the project and/or promoter's landed properties with NEXIM's interest noted.
• A lien over the proceeds of the export transactions financed with NEXIM's interest noted.
• Marketable financial instruments.
• Approved applications shall be required to provide adequate collateral to cover the exposure in the fixed asset coverage ratio of not less than 150% of loan value.

However, where collateral inadequacy could hinder loan sanctioning, additional risk bearing instruments may be explored, including:

1. Nigeria Incentive Based Risk Sharing System for Agricultural Lending (NIRSAL) Credit Risk Guarantee Instrument for agricultural value chain tied to export contracts.
2. Administration of a structured trade finance framework against acceptable guarantees or performance bonds issued by / or on behalf of highly rated collateral managers and warehouse operators approved by the Bank.
3. An acceptable Credit Guarantee Instrument.

Each request for a facility must be accompanied by the following documents:

1. Application Form
2. Request from the project promoter seeking funding under the EDF.
3. Certificate of Business Incorporation.
4. Audited Statement of Accounts for the last three (3) years.
5. Management Account for existing Companies and Statement of Affairs for Start-ups (where applicable).
6. Feasibility Study / Business Plan of the project.
7. Relevant Permits / Licences / Approvals (where applicable).
8. Verifiable Export Orders / Contracts or other Export Agreement & Arrangements/Commitments.
9. Environmental Impact Assessment (EIA) Report (where applicable).
10. Copies of executed warehouse arrangements with acceptable collateral managers for structured trade transaction.
11. Any other document(s) that may be required by NEXIM.

Security Arrangement

Security arrangements as outlined in the Collateral Requirements section above.

All funded projects shall be subject to both on- and off-site monitoring by NEXIM from time to time during the duration of loan. Loans availed under NIRSAL Guarantee shall also be subject to monitoring by NIRSAL.

Reports of the monitoring exercise shall be shared and reviewed by the CBN, NEXIM and NIRSAL (where applicable with regards to agriculture value-chain).

M&E reports shall highlight the following:

• Amount of Forex Generated / Repatriated.
• Volume Processed or Sourced / Exported.
• Employment Generated / Sustained.
• Capacity Utilization / Trade Volumes – Before / After Funding Support under EDF.