THEME PARK

PURPOSE/ RATIONALE ·         Promotion of family entertainment facilities in one location.

·         Development of tourism.

·         Promotion of foreign exchange earnings by attracting tourists from other parts of the world.

·         Employment generation.

·         Provision of long-term funding at a reasonable cost thereby improving its competitiveness.

·         There is need for Nigeria to develop its tourism industry in line with the Federal Government’s effort to diversify the economy.

TARGET MARKET/

CRITERIA

The fund will be accessed by limited liability companies with requisite experience and/or relevant technical partnership
PROJECTED IMPACT Each project along the value chain is expected to create between 50 and 250 jobs.
SINGLE OBLIGOR LIMIT
  • Up to N500 million in accordance with BOI SME lending limits
PRICING

 

Interest Rate: 9 % per annum.

Fees: 1% each for Appraisal and Commitment Fees

TENOR
  • 31/2 – 7 years (inclusive of moratorium).
MORATORIUM 6 – 12 months (from date of loan disbursement depending on the implementation period).
COLLATERAL/ SECURITY ARRANGEMENT
Loan Amount (N’m) Security Arrangement
    1.      Irrevocable Personal Guarantee of the Chief Promoter of the company in addition to one or a combination of the following:

i.       All assets debenture.

ii.                            Legal mortgage on pledged property.

Or

2.    Bank Guarantee from Commercial Banks acceptable to BOI.

 
FUNDING

STRUCTURE

·                 Loan: 80% maximum (including working capital from BOI or the SME-friendly banks).

·         Contribution by the promoter – 20% (minimum).

DISBURSEMENT Term Loan:

·   In phases in accordance with agreed milestones and shall be backed by provision of performance bond issued by a commercial bank or a BOI accredited insurance company, on behalf of the BOI accredited equipment supplier, where the supplier demands for advance payment before delivery of the equipment).

 

·    Establishment of Letters of Credit where the plant and machinery are to be imported.

 

Working Capital:

After successful installation and testing of the equipment and payment shall be made directly to raw materials suppliers

REPAYMENT SOURCE
  • From cash flows generated by the customer’s operations
REPAYMENT MODE
  • Monthly or quarterly payment of interest and principal
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