The Central Bank of Nigeria has said it is offering 9% interest rate per annum on the newly- established N3000 billion Real Sector Support Facility (RSSF),
This was contained in the guidelines released on the apex bank’s website.
According to the guidelines, the nine percent is payable on quarterly basis and it shall be entitled to earn three percent as interest and the banks, six percent spread.
The facility shall be administered at an all-interest rate of 9 percent per annum on quarterly basis. Specifically, the apex bank shall be entitled to earn three percent as interest and the banks, six percent spread.
Apart from the nine percent interest rate, the loan amount is minimum of N500 million up to a maximum of N10 billion for a single obligor. Any amount above N10 billion requires the special approval of management of the apex bank.
The CBN says all deposit Money Banks (DMBs) and Development Finance Institutions (DFIs) are eligible to participate in the facility. The guidelines further stipulates that repayments under this facility shall be amortised and loans shall have a maximum tenor of 15 years depending on the complexity of the project and shall terminate on December 31, 2030. Each project tenor shall be determined in relation to its cash flow and life of the underlying collateral.
The CBN in a bid to unlock the potential of the real sector to engender output growth, value added productivity and job creation established the N300 billion Real Sector Support Facility. The facility will be used to support large enterprises for start-ups and expansion financing needs of N500 million up to a maximum of N10 billion.
Meanwhile, the apex bank has said the real sector activities targeted by the facility are manufacturing, agricultural sector, value chain and selected service sub-sectors.
In another development, the apex bank gave approval to 14 more BDCs to make the total number of BDCs operating in the country 2,586, which has met its new minimum capital requirements of N35 billion.
Last August, the CBN had announced that a total of 2,442 BDCs had met the new capital requirement as at July 31, 2014, after which the CBN added 51 more BDCs to the list on September 5, 2014.
Later in the year, the apex bank added 26 BDCs to the existing ones, while in January 9, 2015, another 21 BDCs were added to the list making them 2,523.
On February 6, 2015, CBN announced the recertification of another 28 BDCs to continue to operate in the industry.
The apex bank unexpectedly, in June last year, announced the increase in the minimum capital requirements of the operators from N10 million to N35 million, while a total of 3,208 BDCs were registered with the CBN.
The reason for the increase, according to the regulator, was to sanitise the industry and get rid of unscrupulous elements, making it mandatory for operators to make a cautionary deposit of N35 billion expected to be deposited in a non-interest yielding account in the CBN upon the grant of an approval in-principle.