CompleteFMC

Power & Airlines Intervention Fund (PAIF) For Big Operations: This is how to apply

Power & Airlines Intervention Fund (PAIF) For Big Operations: This is how to apply

Power & Airlines Intervention Fund (PAIF) For Big Operations: This is how to apply – This is FG N250 billion intervention facility for  Power & Airlines Intervention Fund (PAIF) For Big Operations. Are you involved in Power or Energy and Airline business? There is a federal government intervention fund for you.  As a matter of fact, related searches include CBN power sector intervention fund and associated gas framework agreement Nigeria. Others include CBN intervention funds for covid-19 and Nigeria gas infrastructure blueprint.

Furthermore, our earlier publications on related topics include CBN intervention funds for Oil and Gas value chain for large and small operations for N10b. We also published  NIRSAL PLC Agro Geo-Cooperative model for community cooperative farmers. Click to read any one of your interest, then contact us for your business plan and other start-up processes.

Power & Airlines Intervention Fund (PAIF) For Big Operations: This is how to apply

As a matter of fact, as a part of its efforts at stimulating finance to critical sectors of the economy, the financial institution of Nigeria (CBN) introduces the N250 billion intervention facility to assist stimulate investment within the gas value chain.

In fact, the modus operandi is simple.  Large-scale projects under the intervention are going to be financed under the facility and Airlines Intervention Fund (PAIF), in line with existing guidelines regulating the PAIF. While, small-scale operators and retail distributors are going to be financed by the NIRSAL Microfinance Bank (NMFB) and / or the other Participating financial organization (PFI) under the Agribusiness/Small and Medium and Medium Enterprises Investment Scheme (AgSMEIS). However, if you’re not very sure the way to set about this, please click here.

N300 BILLION CBN POWER AND AIRLINE INTERVENTION FUND (PAIF)

1. 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. Furthermore, 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.

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. In addition, 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. Furthermore, refinancing of existing loans (Power and Airline Projects)

iii. Refinancing of existing leases (Power and Airline Projects)

iv. In addition, 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.

Power & Airlines Intervention Fund (PAIF) For Big Operations: This is how to apply

5. Application Procedures

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. In addition, 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. Furthermore, 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

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

Power & Airlines Intervention Fund (PAIF) For Big Operations: This is how to apply

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

Power & Airlines Intervention Fund (PAIF) For Big Operations: This is how to apply

RELATED POSTS:

We may be of help to you here; see how:

In conclusion, as professional Accountants and tax experts, we help to restructure your business to fit in to this program. One of the approaches is to develop a bankable business plan for on this regard. We also follow up with your C.A.C documentations and other commercial certificates from PENCOM, ITF, NSITF etc.

Finally, because we operate a globally accepted Business Plan templates that are autogenerated, our business plans meet global standard. It has never failed before. Contact us on cfmclimited@gmail.com or +234 8034347851

Kindly subscribe to get the next update,
Just enter your email address below and click SUBSCRIBE

Delivered by COMPLETEFMC


Leave a Reply

Your email address will not be published. Required fields are marked *

Shares