Financing Solutions
Agriculture
Non-Oil Export
Agriculture
PremiumTrust Agro-Services Center Agent Banking (PASCAB)
This is a product specifically designed to use the Agro-Services Centre (ASC) as the special purpose vehicle in driving and deepening banking and financial inclusion services in the semi-urban and rural agrarian areas of Nigeria where conventional bank branches are predominantly absent.
Features and Benefits
- Agro-services centre (Agro-super market, warehouse, agent banking hall)
- Guaranteed market for agro-inputs by farmers
- Guaranteed market for aggregated grains via offtake linkages
- Fees and commission paid to the super-premium agent
- Financial and technical support services
Requirements
- Possession a fenced Agro-services centre by ownership or long lease of at least 5 years in a predominantly agrarian town/community of at least 2,000 people where there is security, access road and telecoms network
- On-boarding of at least 1,500 farmers on funded accounts
- Favourable CDD and EDD reports on the super-premium agent (SPA) and its promoters
Agro-Inputs Dealership Loan (AIDL)
This is a stock finance facility designed to facilitate agro-dealers’ access to high-quality farm-inputs (seeds, fertilizers, herbicides, pesticides, feeds, etc) before the on-set of the farming season for sale to farmers.
Features and Benefits
- Agro-Services Centre (Agro-super market, warehouse, agent banking hall)
- Interest rate: 9-24% per annum
- Term loan: 2-3 years tenor
- Monthly repayment
- Purchase price concession by manufacturers
- Minimal collateral requirements
Security
- Lien of the agro-inputs being financed
- Partial cash collateral and Legal Mortgage
- Irrevocable domiciliation of sales proceeds
- Personal guarantee of the promoter
- Insurance cover
Requirements
- Existing Agro-Services Center with warehouse
- At least two years experience in the business
- 2-3 years audited financials
- Evidence of inputs off-takers
- 3 clean credit reports
Farm & Agro-Machines and Equipment Lease Loan (FAMELL)
This is a lease finance designed for agricultural processors and equipment leasing companies for the acquisition of agricultural and farm machinery, equipment and implement such as milling plants, tractors, ploughs, disc harrow, seed planters, boom sprayers, combined harvesters, mills, etc. for lease or hire to farmers at a fee.
Features and Benefits
- Interest rate: 9-24% per annum
- Term loan: 2-4 years tenor
- 2-3 months moratorium
- Bullet repayment
Security
- Lien of the asset being financed
- Partial cash collateral and Legal Mortgage
- Irrevocable domiciliation of sales proceeds
- Personal guarantee of the promoter
- Insurance cover
Requirements
- Existing Agro- Services Center with warehouse
- At least two years experience in the business
- 2-3 years audited financials
- Evidence of inputs off-takers
- 3 clean credit reports
Agricultural Production Loan (APL)
This is a stock finance facility designed to facilitate agro-dealers’ access to high-quality farm-inputs (seeds, fertilizers, herbicides, pesticides, feeds, etc) before the on-set of the farming season for sale to farmers.
Features and Benefits
- Interest rate: 9-24% per annum
- Term loan: 4-6 months tenor
- 4-6 months moratorium
- Bullet repayment
- Technical support services
- Strict adhere to cropping calendar
- End-to-end monitoring
- Stock/warehousing management
- Structured financing
Security
- Lien of the harvested farm produce
- Partial cash collateral and Legal Mortgage
- Credit risk guarantee (CRG) where possible
- Irrevocable domiciliation of proceeds
- Personal guarantee of the promoter
- Insurance cover
Requirements
- Well mapped and lay-out farmland clusters
- At least two years experience in the business
- 2-3 years audited financials
- Evidence of off-takers of harvested farm produce
- 3 clean credit reports
Agro-Commodity Aggregation Loan (ACAL)
This is specifically designed to facilitate access to credit and loans by agro-commodity merchants and agro-processors to procure and stockpile grains (such as rice paddy, maize, sorghum, etc) for supply as par issued LPO or for processing in owned mill respectively.
Features and Benefits
- Interest rate: 9-24% per annum
- Term loan: 3-6 months tenor
- 2-3 months moratorium
- Minimal collateral requirements
- Structured financing
Security
- Lien of the asset being financed
- Partial cash collateral and Legal Mortgage
- Irrevocable domiciliation of proceeds
- Personal guarantee of the promoter
- Insurance cover
- Warehousing management
Requirements
- Existing warehouse and/or processing plant
- At least two years experience in the business
- 2-3 years audited financials
- Evidence of inputs off-takers
- 3 clean credit reports
CBN Intervention Programmes
There are several intervention programmes that the Central Bank of Nigeria (CBN) has designed to stimulate and support the growth and development of the key sectors of Nigeria’s economy. These programmes involve provisions of loans/credit to agribusiness firms through the Banks or participating financial institutions (PFIs) or provision of credit guarantees and interest drawback payments to encourage Banks to lend directly from their own balance sheet. CBN implements all its intervention programmes in partnership with the Banks.
Intervention Programmes
- Commercial Agriculture Credit Scheme (CACS)
- Anchor Borrowers Programme (ABP)
- 100 for 100 PPP Initiative
- Creative Industry Finance Initiative (CIFI)
- Export Stimulation Facility (ESF)
- Paddy Aggregation Scheme (PAS)
- Maize Aggregation Scheme (MAS)
- Real Sector Support Facility (RSSF)
- Agricultural Credit Guarantee Scheme Fund (ACGSF)
Features and Benefits
- Interest rate: 9% per annum
- Tenor: 3-84 months
- Moratorium: as structured by the Bank or PFI
- Term loans (based on the specific loan purpose)
- Security: as acceptable to the Bank or PFI
- Credit risk is borne by the Bank or PFI
Non-Oil Export
Solid Minerals Exploitation and Export Support (SMEES)
Available data indicate that Nigeria is richly blessed with over 40 types of solid minerals of combined deposits of over 52Billion metric tons. These solid minerals which include granite, lithium, silver, Talc, Gypsum, iron ore, Lead/Zinc, Bitumen, Gold, Coal, Kaolin, Gemstone, etc are of high demand in both local and international markets. Currently, only less than 15% of these minerals are being exploited mainly due to the huge financial investment involved in mining.
At PremiumTrust Bank, we understand the crucial need to diversify our country’s foreign exchange earnings away from the crude oil, hence it has become imperative for us to support firms and businesses that engage in the exportation of solid minerals.
Our value offerings include:
- Mining project finance facilities
- Structured export trade finance facilities
- Invoice Discount Facility for exporters
- Bonds & Guarantees
- Export trading working capital finance facilities
- Export business advisory services
