INDICO Investment set to partner 5 Nigerian banks on N140billion projects finance
UK based Trust Management company, INDICO Investment Limited, is proposing a strategic partnership arrangement with five indigenous banks in Nigeria towards the disbursement of funds worth about N140 billion on financing of projects by various individuals, corporate and governmental institutions in the country.
The five unnamed banks would serve as project guarantors on the funds to be made available by the trust management company to would-be beneficiaries or project initiators.
Making the disclosure was the Managing Director/CEO, Mediamark Limited, PR/marketing consultants to INDICO, Izuchukwu Arinze, while speaking in an exclusive chat recently with MARKETING EDGE in Lagos.
According to him, INDICO investments is interested in working with serious top five banks in Nigeria whom they have chosen using A plus ratings, adding that the banks would serve as guarantors to serious project initiators who may be individuals, corporate, states or the Federal Government.
“What INDICO wants is a serious bank that would serve as guarantor to project promoters; be it states, individuals or corporate organisations. They are interested in working with the top five banks. They insist on A plus ratings and they use modules ratings. In fact, the higher the ratings the better,” he said.
He added that INDICO with its head office station in Ireland, was prepared to provide funds to the tune of $400million to any would-be project initiator with a 30 per cent guarantor rates from any of the banks, while payback of the funds would be spread out for over a period of between 10, 15, to 20 years.
“The major challenge we have is that the minimum that they would finance sounds big to major Nigerian companies. INDICO will not go below anything less than S400 million, and in the Nigeria economy that sounds big. You are talking of almost N140 billion and not every business man in Nigeria can take that kind of fund. But for those who can take it, INDICO gives 100 % and takes nothing except bank guarantee for 30%, and then you have 10, 15 , 20 years to pay back.
“The message is that, this is a big opportunity for Nigerian governments and I mean the states and even the Federal. If they have a good project that can pay back the money (not a pipe dream), I mean real projects that can pay back the money. There is this fund available and there are no strings attached. The only string is that the bank must be involved. The purpose of the bank is to monitor the implementation of this project,” he explained.
He continued: “Our position is to link INDICO with the organisation or government that needs this fund, if that government or individual or organisation can meet the terms,” he stated, adding “And if a serious governor has good ideas, projects that would affect the lives of citizens of the state and be able to generate the money to pay back this fund, INDICO is available to fund such project without touching any money from the allocation to the state.”
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