OFFSHORE FINANCING: HOW TO SECURE FUNDING FOR YOUR BUSINESS PROJECTS

Senior Project Manager

FinancialBridge provides various offshore financing options for business projects, it determines, after proposal review, the appropriate funding body that is best suited for the proposed project.

With the USA Ex-Im Bank Programme, Financialbridge will package and procure 85% of the U.S. cost content of the Project as Loan from one of its associated U.S. Lenders that will utilize the Credit Guarantee Programme of U.S. Ex-Im Bank and the Promoter’ s Corporate Guarantee to provide related U.S. Loan.

The promoter of the project will also be required to provide the remaining 15% of the U.S. cost content as Equity Contribution as well as satisfy local in-country costs requirements, including obtaining local Bank Guarantee to support related Loan Facility.

The U.S. Loan will have medium term tenure of over 5 – 7 years, at an interest rate of 2.0% above Six Months Floating LIBOR (London Interbank Offered Rate).

To start -up the process of obtaining required Funding, the promoter is required to retain the services of Financialbridge and pay negotiable Retainer/Business Development Fee to instrument and procure the U.S. Funds. Following receipt of the payment, Financialbridge will develop a Bankable Business Plan that will satisfy U.S. Export Financial Market requirements and procure the Project Loan.

The Fee will further cover service coordination of Project Loan Packaging and Procurement that will involve the Borrower and the U.S. Lender. The Engagement Fee is refundable in full if the Loan is not procured after the promoters satisfy all the statutory U.S. Financial Market requirements, as outlined under the scope of responsibilities of the business promoters.

The U.S. Lender will underwrite the submitted statutory documentation leading to Loan approval, following which the Lender will request the U.S. Ex-Im Bank for issuance of Political Risk and Medium-Term Insurance/Comprehensive Credit Guarantee before disbursement of related Loan.

The process of underwriting the Loan through approval and disbursement could be concluded within 45-90 days after the U.S. Lender receives the complete statutory documentation as outlined.

Once the loan is approved, Financialbridge will charge a Loan Procurement Fee of 5-7% of Loan amount aid by the U.S. Lender and added to the cost of the Project.

Scope of Responsibilities of Financialbridge and the Promoter/Borrower:

1. Financialbridge shall be responsible in carrying out tasks that will result in the successful procurement of U.S. Loan for the implementation of the Project in Nigeria, including:

1.1 Conduct of Feasibility Study and preparation of Bankable Business: Plan that will satisfy U.S. Export Financial Market requirements. The Business Plan will be concluded within 30-45 days from receipt of Engagement Fee, Data from Market Research as well as Borrowers information. The draft of the Business Plan will be forwarded to the promoter Company for approval and possible input before product ion of final Document.

1.2 Turnkey Packaging, Qualification, Documentation, Sourcing and Procurement of Project Loan from a U.S. Lender, utilizing Ex-Im Bank Comprehensive Guarantee.

1.3 Processing, Due Diligence, Approval and Disbursement of Project Loan within 45-90 days of the U.S. Financial Institutions receiving and underwriting complete statutory documentation from the promoters.

1.4 If required, Financialbridge can also be engaged to Package and Instrument Private Placement of Shares of Common Stock of promoters’ company to raise additional funds through Private Equity Investment, utilizing a local Nigerian Bank as Issuing House.

The Funds raised through the Private Placement could be applied to fund Local Project Site Development / In-Country Costs as well as required Equity Contribution, etc.

2. Promoter / Borrower: The promoter/borrower shall be responsible for the following within the requirements for successful Loan Procurement, including:

2.1 Obtaining Nigerian Bank Guarantee for 85% or 75% of the total U.S. Loan amount to fund the Project, depending on the Ex-Im Bank requirements.

2.2 Securing all required Permits and Licenses from Nigerian Regulatory Authorities

2.3 Submission of Three Years Audited Financial Statements of the Nigerian Bank as certified by a renowned Accounting Firm.

2.4 Provision of Equity Contribution of 15% of total U.S. costs content within the overall Project cost for U.S. Ex-Im Bank Guaranteed Loan to be added to 85% of total U.S. cost content as Loan.

2.5 Funding of all Professional Fees, including U.S. Lender’s and Ex-Im Bank Project Underwriting and Loan Closing Fees.

2.6 Payment of Retainer/ Business Development Fee to Financialbridge for Loan Packaging, Qualification, Processing, and Procurement, including development of Bankable Business Plan to satisfy Lenders requirement for related Loan.

Exclusions and Responsibilities of Project Promoters:

1. Local Taxes, Custom Duties and VAT (into the destination country)

2. Port Clearing of Plants, Machinery & Equipment and Inland Transportation to Site

3. Construction Authorizations and Permits

4. Connections to the Local Networks (Water, Electricity, etc.)

5. Visa Processing and In-country Room & Board for Expatriate Engineers in the duration of Construction & Erection.

6. Security for the supplied equipment at site and U.S. Expatriates

20/40 BUSINESS PROJECTS US-EX-IM BANK IS READY TO FINANCE IN NIGERIA

The United States of America Export-Import Bank (Ex-Im Bank) is the official Export Credit Agency of the United States. Ex-Im Bank assists in financing the export of U.S. goods and services to international markets. This enables large and small U.S. companies to turn export opportunities into real sales that help to maintain and create U.S. jobs and contribute to a stronger national economy.

The Ex-Im Bank provides Working Capital Guarantees (Pre-Export Financing), Export Credit Insurance, Loan Guarantees and Direct Loans (Buyer Financing) to beneficiaries in countries around the world. These beneficiaries are availed the opportunity to fund new business initiatives and to finance the expansion of ongoing business concerns through accredited agents of the Ex-Im Bank.

One of the accredited agents of the US Ex-Im Bank with special focus on Nigeria’s business environment is FinancialBridge, a Florida, USA Corporation providing Export Finance and Business Credit Consulting Services to U.S. and International Private Companies and Government Agencies. FinancialBridge is represented in Nigeria by Energy Industry Development Initiative. In this review, we highlight 20 business projects the US Ex-Im Bank is ready to finance in Nigeria.

AGRO-BUSINESS Farming, Food Processing & Distribution Projects

1. Fish Processing, Cold Storage & Distribution Project: The project estimated to cost about $5.75 million, will be capable of processing 10-12 tons per 12 hour day of Fresh Fish (Tilapia, Grouper & Catfish), Pink & Grey Shrimps and Crawfish.

The overall goal of the project is to establish a Pre-Engineered Processing Facility in Coastal Fishing Communities that will be capable of processing Fresh Fish, Crawfish and Shrimps purchased from local Fisherman and Fishing Cooperatives for processing and distribution through a Network of ten (10) Fish Shops to be located throughout various markets. The project will also incorporate Smokehouse Equipment capable of producing Smoked Fish & Crawfish Products for International and Local sales.

The project will not be involved in fishing or fish trawling but will provide opportunity to Fishermen that are compelled to smoke dry the day’s catch as a means of preservation, while leftover fresh fish are normally sold in local markets at give away prices to avoid spoilage. The project will ensure proper care in cleaning, handling and packaging the fish, thereby eliminating the fish from spoilage and supply a consistent source of high quality fresh fish free from contamination.

Main Processing Facility:

 14,000 sq. ft. Pre-Engineered Project Building with 6,000 sq. ft. Refrigerated Warehouse, Cold Storage and Refrigeration System, Fish, Crawfish & Shrimp

 Packaging & Processing Equipment, Standby Power Plant, Industrial Ice Production Equipment, 5 x 2.5 Ton Refrigerated Trucks, Tools and Accessories and 3,500 sq. ft. Wholesale & Retail Fish Market attached to the facility.

 Ten (10) x 1,500 sq. ft. Pre-Engineered Fish Shops, each complete with 20 ft. containerized Cold Storage, Refrigerated Counters & Industrial Freezers, as well as portable Power Generators

 Smokehouse Equipment

 Delivery Support Boats.

 Industrial Walk-in Coolers and Freezers

 Walk-in Coolers, Freezers and Refrigeration Units:

2. Meat Processing and Packing Plant: The Meat Processing and Packing Plant will process a mixed quantity of Cattle, Goats and Pigs to be sourced from the local heads. The project’s main products line will include Processed Beef Cuts as primal and sub wraps, showing different parts of the meats like Steaks, Middle Meats, etc. Other meat products to be produced will include Goat Meat Cuts, Pork and Pig Meat Cuts, Bacon and Sausage Products, Tenderized and Smoked Meat Parts, etc.

The meat products will be packed in preprinted vacuum-sealed packages under modified atmospheres to retard microbiological spoilage and prevent discoloration of products. The products will be stored in the Plant’s Cold Storage and Refrigeration Systems and distributed to supermarkets utilizing three (3) 20-ton Refrigerated Delivery Trucks initially.

The Plants, Machinery and Equipment list include:

 Pre-Engineered Administrative Building

 Pre-Engineered Metal Factory Building, complete with Slaughter & Processing Equipment

 Bone Grinding – Boiler Building.

 Cold Storage and Refrigeration Systems

 Smokehouse, Sausage and Bacon Processing Equipment

 Tenderization & Sterilization Equipment

 Processing and Freeze Packing Equipment

 Meat Packaging Equipment & Accessories

 Pre-Printed Packing Materials and Sanitation Equipment

 1,000KVA Standby Electric Power Generators

 2×1 Forklift Truck

 3 x 20-ton Refrigerated Trucks

 Water Bore Hole Pumps & Tanks, etc.

Estimated Cost: CIF of Plant, Machinery and Equipment, Installation and Start-up: From $4.85 million.

3. Fruit Juice Processing Plant: A 20-30 ton per day Fruit Juice Processing Facility can process and package up to 3,000 liter/hr. of various Juices and Spring Grade Water, bottled and packed in PET and or Pouch Systems.

The system will be designed to wash, prepare and juice a range of citrus and tropical fruits, blow heat set bottles from pre-forms, blending of fortified water and juice based products, flash pasteurization and sanitizing of the filling system, bottles and caps. The system will accommodate 0.5 and 0.75-liter PET bottles with 28mm screw caps or Pouch Drinking System.

Juice Processing Equipment:

 2 x 60 Hl raw Juice Holding Tanks with agitators, glycol jacket and cladding and Juice concentrate drum handling and dispensing system.

 In-line blending system complete with 15 Hl. batching tank and two 30 Hl. packaging holding tanks.

 Single tank CIP/SIP system with Oxine activation unit for cleaning and sanitizing process lines and tanks.

 Product transfer hoses for the juice processing area.

 Stainless steel hose and bottle cap sanitizing bath.

 “PurePass” “Hot Fill” pasteurization system rated at 30 Hl/Hr for non-carbonated products complete with feed tank, filler supply tank and CIP/SIP system.

 Oxine activation units to allow the high strength, activated Oxine (4,000 ppm plus), to be used throughout the plant at different concentration levels for sanitizing.

 Stretch blow moulding machine for 6,000 BPH with automatic pre-form feeder and hopper, heat exchanger, chiller, compressors, air distribution and filter package.

 Two sets – Moulds for 0.5 and 0.75 liter PET bottles with 28mm caps.

 PET Bottle Rinser, Filler and 28 mm. screw capping system for juice hot fill and non- carbonated water packaging.

 Filler frame and shroud for sterile filling operations.

 Pre-rinse unit and Rotary feed table & Slat band chain infeed conveyor

 Slat band chain discharge conveyor & Glue wrap around labeler

 Shrink wrapper, Tray conveyors, and Ink jet printer

 In-feed and discharge interface and build back control.

Pouch Packaging System and Equipment capable of producing up to 7,200 pouches an hour at 100% efficiency:

 Pouch filling system for 250 ml. plastic film pouches for water and juice products.

 Discharge conveyor and full pouch hopper.

Utilities & QC Equipment:

 1x 40 ft. reefer box and 3 Ton chiller unit for raw juice storage tanks to chill the juice for storage

 50 HP Steam Boiler With condensate returns and blow down tank

 Utilities pipe work and fittings for connecting to the process and packaging plant

 Laboratory equipment for in-plant QA for bottled water and juice analysis

 Control and Spare parts for 1 year operation

Estimated Cost – CIF, Installation and Start-up: From $6.5 million.

4. Water Bottling & Soft Drink Production Plant: The Plant will be capable of bottling 56,000 Gallons of Processed Water per day packed in .5, 1 & 5 Liter Bottles as well as produce Carbonated Soft Dinks in different flavors, packed in 12oz & 24oz PET Bottles.

Water Bottling Plants, Machinery and Equipment List:

 Water Treatment Equipment with State-of-the-art Reverse Osmosis System & Bottling Line

 Water Bacteria Protection System

 5 Liter + Washer and Filler

 Dual Tank Commercial Multimedia Filter:

 Dual Tank Commercial Carbon Filter & Anti Scalent Injection System

 Purified Water Storage Tanks & Ozone Disinfections Systems:

 Small Bottle Packaging System & Shrink Wrapping System

 Automatic Bottle Unscrambler & Case Packer

 Cleanroom Air Filtration and Pressurization System

 Blow Molding System & Standard Test Equipment Package

 PET Plastic Bottle Production Line – .5, 1 and 5 Liter Bottles

 Water Bottle Molds:

Soft Drinks (Soda) Production Line:

 Carbon Dioxide Carbonation Machine:

Support:

 Modular Steel Factory Building – 80’x 100’x25’

 1,000 KVA Caterpillar Standby Power Plants.

Estimated Cost- CIF, Installation of Plants, Machinery and Equipment, Training and Start-up: From $3.6 million.

5. Micro Brewery Plant: Micro Brewery Plant with annual capacity of 15,000 Hectoliters designed to produce Lager Beer, Malted Beverages, Bottled Water and Soft Drinks (soda), with minimum consolidated daily production broken down to:

2,982/22 oz Bottles of Beer per day

5,352/12 oz Bottles of Beer per day

3,894/12 oz Bottles of Malt per day

1,200/12oz Bottles of Mixed Soft Drinks per day 1,200/12oz Bottles of Mixed Diet Soft Drinks per day.

Production Plants, Machinery & Support Equipment List:

 Malt Handling and Milling Equipment:

 Brewhouse Equipment

 Cellar Equipment , Valves and Fittings

 Packaging/ Racking System

 Lab Equipment

 Bottle Filling Equipment

 Keg Filling and Cleaning Equipment

 Tunnel Pasteurizer

 Glycol System Piping and Control

 Steam System Piping and Controls

 Keg Washing & Filling Machines

 Fermenting and Storage Tanks

 Water Filtration Equipment

 Level Gauge and Air compressor

 Yeast Propagation Plant, Tank and Control System

 K Mash & Wort Kettle

 Kettle Drive (Overhead Drive) & Steel Furnace

 Natural Gas or Diesel Burner & Conical Kettle Dome

 Inner Light Fixture & Sprinkling Pipe

 Whirlpool & Accessories , Steam Condensing Pipe

 CIP-Unit , Hot Water Tank ,Steam Heated Heat Exchanger

 12-Head Bottling Line

 Power Plant

 Project Building

Estimated Cost: CIF, Installation, Training and Start-up: From $5.5 million.

6. Commercial Cassava Farming and Processing Project: The Integrated Cassava Cultivation and Processing Project will be designed as a viable commercial enterprise to utilize available farmland to cultivate Cassava, which has very high secondary product demand as industrial raw materials, apart from domestic consumption demand of various Cassava Food Products.

A Processing Unit will be designed to process 100 to 500 Tons per day of Raw Cassava into Industrial / Commercial Starch and other mixed products of Flour, Garri, Chips, Pellets, Animal Feed and or Glucose Syrup/Powder. The Cassava Farming aspect of the project will be capable of employing over 3,000 workers and cultivate from 500 through 1,000 hectares of farmland.

Applications of Cassava (Tapioca) Starch in Food and Non-Food Industries include:

 Filler – Increasing the content of solids in canned soups, ice creams, fruit preserves, pharmaceuticals, etc.

 Binder – Binding the products and preventing drying during cooking as in sausages and meat preserves, etc.

 Stabilizer – Using the high water-holding capacity as in ice creams, baking powders, etc.

 Textile – Size for warp threads to reduce warp breaks and shredding on looms. Printing Starch to thicken dyes and act as carrier for color. Finishing Starch to improve stiffness and weight (Native or Oxidized Starch).

 Thickener – Using the paste properties, as in soup, baby food, sauces & gravies.

 Paper – To improve strength, increase resistance to folding, etc, and on surface to improve appearance and resistance. For corrugated and laminated paper and paper board box.

As Binder For Industrial Uses – Ceiling board, Gypsum board, Feedstuff (Aquafeed and Livestock Feeds).

 Other Industrial Uses – Decomposable Plastic Bags, Tire Industry, as Glue for Plywood Industry and Detergents.

Processing Plants and Machinery include:

 Weighing Scales

 Root Washing , Burner and Automatic Washing Machine

 Chopping & Rasping Equipment & Washing Tower and Desanding Equipment

 Cassava Peeling Machine & Automatic Chipping System Machine

 Starch Extraction and Pulp Dewatering

 Starch Concentration and Fine Fiber Sieving

 De-Hydrating Line & Pulp Dewatering Sieve; Washing Tanks and Packaging Bags

 Grinding Machine & Extraction/pulp dewatering Unit

 Concentration Line & Starch washing & Dewatering Equipment

 Drying and Bagging – Pneumatic Flash Dryer

 Concentration & Refining Unit , Feed hopper & Discharge belt conveyor

 Inclined belt conveyor , Dry cleaning drum & Peel Water Pump

 Horizontal, Screw Chopper, Inclined belt conveyor & Feed hopper

Estimated Cost: Cassava Farming Project (Cultivation of +500 Hectares): From $5.75 million.

Estimated Cost: Cassava Processing Plant of 100 tons to 500 tons per day covering CIF, Installation, Training, & Start-up: From $4.8 million through $11 million.

7. Plantain, Cassava and Potato Chips/Flakes Production Plant: The Plant will be designed to process up to 6,500lbs/hr of mixed Raw Materials of Plantain, Cassava and Potato into Chips and Flake Products, packaged in 6oz to 20oz Pre-Printed Packs.

Plantain Chips: Estimated Cost: CIF, Installation, Training and Start-up: From: $2.82millio

8. Canned Tomato Paste Manufacturing Plant: Canned Tomato Paste Manufacturing Project capable of processing between 2,500 to 6,000 metric tons of Tomato into Canned Tomato Paste Products.

A small scale plant capable of producing 30-40 (12oz/340grams) Cans of Tomato Paste per minute is estimated to cost $5.7 million, including Processing Plants & Machinery, Pre-Engineered Factory Building and Standby Power Plant

A medium scale plant capable of producing 90-100 (12oz/340grams) Cans of Tomato Paste per minute is estimated to cost $9.25 million, including Processing Plants & Machinery, Pre-Engineered Factory Building and Standby Power Plant.

The Tomato Paste Making Machinery includes:

 Washing & Sorting Line

 Elevator for Fruit, Crusher

 De-Pulper & Pre-Heating Unit

 Buffer Tank & Vacuum Evaporator

 Storage Tank

 Hot Kneader Rotary tank & Automatic Filler

Can Making Line:

 Automatic Sheet Feeding Machine

 Automatic Tandem Slitters

 Cutter Grinder Machine & Outside Lacquer Coating Machine

 Automatic Flanging Machine & Automatic End Seamer

 Magnetic Elevator & Automatic Body Conveyor

 Body Welder , Generator, Exhaust Box

 Auto-Seamer, Automatic Can Pasteurizer

 Coller Empty Can Feeding Equipment

 Pipe for Juice Conveyor , Hygienic System, Conveyor System

 Small Tomato Packing System

 Automatic Sheet Feeding Machine with Oiling Device

 Automatic Gang Slitter & Automatic Strip Feed Pres with Mould

 Automatic Curling Machine & Connecting Conveyor

 Automatic Lining/Drying Machine & Horizontal End Stacker

9. Fish, Shrimp & Crawfish Trawling Project: Available U.S. manufactured and Pre-Owned fully refurbished Fish, Shrimp/Crawfish Trawlers are in average of 8-15 years old and powered by engines of various models, max speed of 20-40 knots, complete with Navigation / Radio Equipment, GPS Fish/Shrimp Finders, Crew Cabins, Refrigerated Fish/Shrimp Holds and Fiberglass Work Area on Deck. Estimated Cost: Including Cost of Pre-owned Vessel, Refurbishing & Training From $950,000 through $7.1 million.

10 Solid Mineral Mining and Processing Project: Plants and Machinery for use in mining and processing a wide range of solid minerals into commercial and processed exportable raw materials, including Limestone, Clay, Kaolin, Dolomite, Silica Sand, Pyrite, Bauxite, Gypsum, etc.

The Plants and Machinery for a typical solid mineral mining and processing plant will include Crushers, Screens, Machine Feeders, Washing Equipment, Conveyors, Scales, Power Plants, Wheel Loaders, Loader Backhoes, Skid Steer Loaders, Dozers, Excavators, Scrapers, and Cranes, capable of processing up to 20 100 tons per day of related solid mineral products.

Estimated Cost – CIF, Installation and Start-up: including CIF, Installation, Training, & Start-up from $1.2 million through $7.5 million.

A Solid Mineral Processing and Milling Project can also be established to process the lumps and chips of various solid minerals and milled into various export grades of industrial powders of 250 mesh to 1,000 mesh and bagged in 25 kg bags for marketing, depending on local and international buyers’ requirements.

Units of Hammer Mills and Ball Milling Machines will be installed to mill crushed lumps of Dolomite, Granite, Marble, Limestone, Kaolin, Mica and Gypsum into dust range of between 0-20 and further reduced to very fine industrial powder of 250 mesh to 1,000 mesh. By varying the screen size, shaft speed or configuration, the mills can dramatically alter the finished size of the product being ground. Faster speed, a smaller screen and more hammers and addition of ball grinders will result in finer end products of 250-1000 mesh quality. Each component can be changed individually or modified to produce the precise grind required.

Estimated Cost – CIF, Installation and Start-up: $5.25 million.

11 Dredging and Commercial Sand Production Project: Fully equipped Dredger capable of excavating approximately 300 cubic yards of commercial grade sand per hour, utilizing 8′ x 10′ dredge pump. The Dredger uses a hydraulic, submersible 12″ radial fan pump mounted at the end of the boom behind a shrouded, horizontal cutterhead. The pump is rated at 3,500-gpm slurry with a maximum T.D.H. (slurry s.g. 1.25) @ 881 rmp w/2,000 feet discharge length.

Dredge functions are controlled by a diesel/hydraulic power unit driven by a turbo-charged diesel engine with 325 hp at 2,200 rpm. The operator’s cab comes complete with Air Conditioning.

Estimated Cost CIF, Training, Operation and Start-up: $559,000.

12. Portable Sawmill and Wood Processing Project: A typical Wood Processing Project incorporates 4 Portable Sawmills with advanced hydraulics, each with industry-leading 62HP diesel engine for primary sawing of various sizes and types of log into sawn timber products. The plant will be capable of processing wood into export grade Boards, Plywood, Casings, Baseboards, Crowns, Standard Moldings, Chair Rails, Dentils, Mantels, Accessory Blocks, Flooring, Doors and Accessories.

The project will also have three (3) integrated Solar Drying Kiln Systems with solar collectors, three insulated walls, aluminum flashings, drip cap, clear plastic roofing, passage doors and air intake door, distribution and circulation fans, each with a capacity of 3000 bd.ft. Solar energy enters through clear plastic roof, hits the black painted surfaces of the interior walls, baffles and is converted to heat. Three fans circulate dry air drawn from adjusted vent to pickup moisture from lumber piles. Temperature of over 20 degrees is easily achieved for drying.

Estimated Cost – CIF, Installation, Training and Start-up: From $710,000.

13. Portable ConcreteRoofing Tiles Plant: The Portable Concrete Roofing Tiles Plant will be supplied in manual, semi-automated and fully automated models, capable of producing complete range of Roofing Tiles, Ridges and Caps, with capacities of minimum 60 tiles per minute or 2,000 – 50,000 roofing tiles per 16hr/day, with fully Acrylic Painting and Stretch Wrapping.

Estimated Cost – CIF, Installation, Training, & Start-up, from $100,000 through

$4.5 million.

14. Corrugated Long Span Aluminum Roofing Sheets & Allied Product Project: The Plants & Machinery will have two lines, with one line producing 16,335 Feet/Day of Corrugated Aluminum Roofing Sheets in 0.35 mm, 0.45 mm, 0.55 mm and 0.70 mm as well as 1,900 Feet/Day of Roofing Ridges, Gutters, Claddings and Roofing Accessories.

The second line will produce Profiles, Aluminum Door & Window Frames as well as Pre-Fabricated Panels and Accessories for construction of Factory, Commercial Buildings and Private Homes.

The project can be expanded into a second phase that would incorporate additional equipment to produce a wide range of aluminum products including Cooking Utensils, Pots and Pans, Liquefied Petroleum Gas (LPG) Cylinders (12kg & 4kg), Ladders, Automobile Parts and Components, etc.

The raw materials for the manufacture of Corrugated Long Span Aluminum Roofing Sheets, Cladding, Roof Gutters, Ridges and Roofing Accessories, as well as Pre-Fabricated Panels and Accessories for Factory/Commercial Buildings and Private Homes will include Painted Mill Finish Aluminum Coils with dimensions of 0.014″(0.35mm) x 49.213″ through 0.028″ (0.70mm) x 49.213″), while Cold Rolled Mill Finished Aluminum Coils of various sheet thicknesses will be used in the production of Windows and Doors Frames as well as Profiles for Railings, Partitioning, Cashers Cubicles and Roof Gutters.

Estimate cost: CIF, including Installation, Start-up Pre-Painted Raw Materials (Coils), Pre-Engineered Factory Building, Standby Power Plant and Lift Trucks: From

$5.5 million.

15. General Electronic Products Assembly Plant: The project will involve supply and installation of Plants & Machinery to assemble Complete Knock Down (CKD) Components into E-Commerce and General Electronic Products, including GSM Phone Sets, Desktop / Laptop Computers, Central, Window, Wall and Splits Air-conditioning Units, expandable to assemble other products in the future depending on market demand.

Project Implementation will also cover supply of 3 months CKD Stock of the products to be assembled as well as installation of Support Facilities including 80’x100’x25′ Pre-Engineered Steel Factory Building, 600 KVA Standby Caterpillar Power Generator, Satellite Based Wireless Internet System and Walking 4500-Lb Pallet Truck / Rider 6000-Lb Pallet Trucks. Estimated Cost – CIF, Installation and Start-up from:

$2.75 million.

16. Fertilizer Blending Plant – 60 Ton/hour – packed in 50 kg. Bags: The Plant will produce Multi-Nutrient Fertilizer known as NPK Fertilizer by blending raw materials of Nitrogen (N), Phosphorus (P) and Potassium (K). The Plants, Machinery and Equipment of the 60 tons per day Fertilizer Blending and Bagging Project, estimated to cost from $5.85million.

Equipment: Self-Contained Lump Buster with 304 stainless steel housing and 3′-6” (1.06M) x (4.12M) wide charging hopper with low lip and mounted over elevator intake. Complete with 30 horsepower (22 Kw) totally enclosed fan cooled motorized speed reduction drive. Unit is shipped completely assembled.

Bucket Elevator- 20” (508 mm) x 52” (1320.8 mm) x 73′-0” (22.3 M) discharge height having stainless steel boot with clean-out door. Intermediate and head section of type 304 stainless steel. Elevator is supplied with gravity take-up assembly, including boot sprocket with shaft and double seal take-up bearings. Elevator also includes double interlock pillow block bearings, head shaft, split flanged rim head sprocket and combination chain with attachments ever 3rd link, and 16” (406.4 mm) x 8′ (203.2 mm) Bucket

Heavy Duty 8-Way Distributor, complete with motorized controls. Distributor Housing and internal spout are fabricated of type 304 stainless Steel. Complete with indicator switches to indicate spout position. Spouts to hopper compartments and one spout direct to mixer. Spouting of all 304 stainless steel construction.

Compartment Hopper consisting of: (6) 15 metric tons compartments of all 3/16” (4.76 mm) and ¼” (6.35 mm) steel plate construction. Total hopper capacity is 90 metric tons. Also included are access doors for each compartment. It is recommended that hopper be sandblasted inside and out and coated with coal tar epoxy paint or fabricated of stainless steel. Hopper to be knocked down match-marked and welded in the field to minimize shipping cost.

14” (355.6 mm) Pneumatically Operated Totally Enclosed Salem Valve of stainless steel construction with pneumatic cylinders with Stainless steel rods to be mounted on bottom of hoppers; stainless steel solenoid valve sets for the operation of valves: Canvas Socks and stainless steel clamp bands, provided for dust tight connection to weigh Hopper. Gates extra heavy duty.

17. Hydrated Lime Plant: The Hydrated Lime Plant will process locally available Limestone into Commercial and Export Grade Hydrated Lime Products packed in 50kg Bags. Hydrated Lime (calcium hydroxide, Ca(OH)2), also known as slaked lime, is a dry powder manufactured by adding water to quicklime, converting the oxide to hydroxide. To produce lime, crushed limestone is burned in a kiln at temperatures ranging from 8900 to 13400C. A dissociation reaction takes place when the limestone is broken down, releasing CO2 and producing CaO or CaO.MgO (quicklime).

Hydrated Lime has a wide industrial application in the Paper, Polymer, Healthcare, Paint, Water Treatment and Asphalt. Hydrated Lime is commonly used as a softeningagent in water treatment as well as a mineral filler and stiffener in binding hot mix asphalt. Estimated Cost – CIF, Installation and Start-up: From $15.8million.

18. Waste Collection, Processing and Recycling Project: The Waste Collection, Processing and Recycling Project is designed to collect Household and Industrial Wastes, including Plastics, Scrap Metals, Paper and Tires, etc., and processed into reusable and marketable raw materials.

The plant is structured as an integrated viable commercial unit, operating three levels of Waste Collection, Sorting and Processing, with a capacity of 50-100 tons per day. The Project content will include Waste Processing & Recycling Plants, Front and Side Loading Garbage Trucks, Handling Equipment & Materials, Home and Office Outdoor Rollout Waste/Garbage Containers, Utility & Support Equipment, etc.

Estimated cost: From $5.75million, covering CIF, Installation, Training & Start-up.

19. VSAT Wireless Telephone and Internet Network Project: The project will involve the utilization of Small Aperture Terminal (VSAT) equipment to develop a Wireless Telephone and Internet Network Project capable of utilizing the Network to provide between 1,000 domestic and 10,000 commercial VoIP Telephone Lines, complete with Cordless and Desktop Handsets and Wireless Receiver Units for rural and urban subscribers communities.

The VSAT Wireless Network System can also be configured to facilitate establishment of Digital Wireless Network Centers as Digital Community Resource Cafés to additionally provide Commercial Internet Services, Commercial E-mail Accounts, Web Design and Hosting, Telephone Interlink, Commercial Pre-Paid Calling Card Services and Bandwidth Leasing. Other services will include LAN Administration, Corporate and Commercial Internet and E-mail Access Services to other standard ISP Accounts, Set up of LANs for Corporate Clients, VSAT Point-to-Point Links, Pre-Paid Pay Phone Services and Computer Training for schools, employees of Government agencies, private companies and local communities.

The project will start with the deployment of a high-speed satellite link that will feed a series of transmission towers in turn connected to the end users. The Network Architecture will be fed with a 3.7 satellite link via a satellite dish located on the top of an antenna structure and connected to a Network Operation Center (NOC).

Estimated Cost: CIF, Installation, Training & Start-up and Network Management:

$7.5 million.

2. Portable VSAT Satellite Internet & VoIP Telephone Systems: Commercial IT Projects can be established involving development of Digital Communications Cafes utilizing High-Speed Wireless Internet Satellite Systems, each connected 24 hr/day to provide private IP address on a leased or shared line of up to 2Mbps in download and 512Kbps for upload. The portable system can also provide Voice, Fax and High Speed Internet to remote domestic homes or commercial offices where local telephone carriers are not available.

Each portable unit will be capable of providing Web Access, E-mail Services, Prepaid VoIP Telephones and Fax by Satellite Service. The units can be configured for network solution and will not require local ISP connectivity and come ready-made for easy deployment within a multiple Digital Communications Cafes, which will be housed in Pre-Engineered Steel Buildings shipped along with the equipment.

Coverage:

 Africa and the Middle-East

 Central and Eastern Europe

 European Union

 Russia, Kazakhstan, Turkmenistan, Takjikistan, etc.

 India, the Caribbean and Pakistan

The development of a Digital Communications Café complete with Portable Satellite Internet System, Accessories, Desktop Computers, Software, One (1) Year Prepaid Access Fees, Backup Generators, etc. Estimated Cost: From $100,000, while portable units for single homes or offices cost from $15,000.

20. Professional Skill Outsourcing Support Facility: The Professional Skill Outsourcing Support Facility has capacity to utilize over 1,000 local Professionals from locations in developing economies to provide services to European and American Companies seeking cheaper Telecom, IT Networking, Insurance, Banking, Financial, Software and Retail Services. Companies from developed economies turn to developing countries with English speaking educated workforce to grow Telecom infrastructure capable of providing Back-Office Support.

The Center will be designed, equipped and fitted with IT and Telecom Facilities as a Business Service Provider and up to the standard of similar Offshore Back-Office Service facilities around the world. Some developing countries have large IT-workforces that can easily be retrained to standards acceptable to companies in the United States and Europe, to serve as Internet and E-commerce Applications and Database Administrators, Software Engineering/Programmers/Analysts, Network Specialists and Communication Engineers.

Other retrained skilled professionals can provide services in Bookkeeping, Inventories, Data Entries, eAccounting, Payroll Processing and Management, Data Conversion, Call/Contact Services, Drawing Conversion, Component Procurement Services, Accounting, Insurance Claims Processing, E-commerce Transaction Support, Live Online Enquiry Handling, Customer Support, Tele Marketing, Transaction Processing, Travel and Hospitality Services, etc.

Many Foreign Banks engage employees at India -Bangalore Centers to process transactions for the banks’ offices in New York, Frankfurt, Tokyo and London. A company in India provides call center and claims processing services for about 25 major corporate clients, mainly financial services companies such as U.S. Credit Card Firms. American CPA Firms and other Corporations in the U.S. outsource preparation of Financial Statements, Payroll Summaries, Income-Tax Returns or other Accounting Outputs to companies in countries that have skilled English speaking manpower.

Estimated Cost of Installation of Pre-Engineered Building to house the Professional Skill Outsourcing Support Facility complete with IT, Telecommunication and Support Equipment capable of training and utilizing over 1,000 Professional for Back Office Support From: $7.5 million.

Next week we continue the highlights of business projects the US Ex-Im Bank is ready to finance in Nigeria and review the process for accessing the funding by Nigerian entrepreneurs.

To be continued.

FINANCIALBRIDGE: HOW TO DO BUSINESS WITH THE AMERICAN INVESTMENT COMPANY THAT FACILITATES OFFSHORE FUNDING FOR NIGERIAN BUSINESSES

When Patrick Fournie, Senior Advisor with FinancialBridge, Inc. made his presentation on the “Private Ownership of Modular Refineries in Nigeria: The New Trend in Building Petroleum Refining Capacity: The Financialbridge Experience” at a seminar organized by the Energy Industry Development Initiative at the Federal Palace Hotel, Victoria Island, Lagos State, this past Tuesday, 11 November, 2008, seminar participants listened with rapt attention.

Fournie presentation, was for the Nigerian and other foreign participants at the seminar, a revelation of a new vista in financing strategies on the pivot of offshore financing, he informed the seminar of how FinancialBridge is facilitating funding for a Pharmaceutical Project in Abuja, at a cost of $12.2 million and an aluminum roofing sheet & allied project at Onna in Akwa Ibom State at a cost of $6.6million. FinancialBridge, he said, is also involved in funding for an amusement park project at Isheri, Ogun State, at a projected cost of $22.3 Million, a pit quarry mining project at Oyebiyi, Oyo State at a projected cost of $7.5 million and a 5-Star luxury hotel in Abuja at a projected cost of $55.8 million.

Other projects FinancialBridge had been engaged to facilitate funding for by Nigerian entrepreneurs are the phase one of the 12,000Barrels per day modular refinery project at Eket in Akwa Ibom State at a cost of $43.7 million and the 12,000Barrels Per Day modular refinery project at Kolo Creek in Yenagoa, Bayelsa State at a projected cost of $121.3 million. A $197.5 million 18,000Barrels Per Day modular refinery project in Edo State is also one of the projects FinancialBridge is facilitating offshore funding for.

Fournie who flew into Nigeria to make further revealed how his company had structured funding and project implementation procedures for the soon to be streamed 12,000 Barrels Per Day Amakpe Refinery Project at Ikot Usekong – Eket in Akwa Ibom State and the Rehoboth Refinery, also a 12,000 Barrels Per Day Refinery Project in Yenagoa, Bayelsa State.

Fournie, who, on behalf of Financialbridge, signed a Memorandum of Understanding (MoU) appointing Energy Industry Development Initiative as its representative in Nigeria, explained that FinancialBridge is an export finance and business credit consulting firm:

“We work with U.S. and international financial institutions to provide innovative funding solutions to private companies and government agencies, including: export trade finance, project finance, public sector financing and export working capital. We are also involved in equity financing and facilitation of bridging loans” Fournie said.

“We cooperate with Project Implementation and Management Companies in ensuring effective utilization of procured funds for successful planning and execution of related projects and trade transactions.”

Highlighting its primary sources of export funding in the United States financial market, Fournie said his company’s sources include: Export-Import Bank of the United States (U.S. Ex-Im), Overseas Private Investment Corporation (OPIC) and the Export Finance Banks and Credit Insurance Companies, among others:

“Ex-Im Bank is the official Export-Credit Agency of the United States that helps create and maintain U.S. jobs by financing the sale of U.S. Exports, primarily to emerging markets throughout the world. Ex-Im Bank provides Loan Guarantees, Export-Credit Insurance and Direct Loans, in fiscal year 2007, Ex-Im Bank authorized $12.6 billion in financing to support an estimated $16 billion of U.S. exports worldwide.” Fournie said.

Perhaps, of importance to Nigerian entrepreneurs, is the revelation by Fournie that the Ex- Im Bank has approved a $1.0 billion facility to guarantee Nigerian Projects (of which $800 million is still available) despite the global financial melt down.

Explaining the process for securing offshore funding for projects in Nigeria, Fournie said:

“Under the Ex-Im Bank Guarantee Program, the Promoter is required to provide Statutory Equity Contribution of 15% of U.S. Cost Content, while the U.S. Lender funds 85% of the U.S. Cost Content utilizing the Comprehensive Credit Guarantee of Ex-Im Bank. The Project Promoter is further required to provide Local Bank Guarantee to support the 85% portion of the U.S. Loan as well as finance local In-Country Costs requirements within the overall Project Cost.The U.S. Ex-Im Guaranteed Loans have Medium Term Tenure of 5 to 7 years at Interest Rates of +/- 2% above Six Months Floating LIBOR (London Interbank Offered Rate).

Some of the projects funding prospects of FinancialBridge include Oil and Gas (Modular Oil Refineries, Gas Gathering & Processing Plants, Downstream Petrochemical Projects, Pipelines, etc.), Energy (Gas Turbines and Diesel Powered Plants), Communications (Wireless VSAT Network VoIP Telephone, Fax, High Speed Broadband Internet Systems, Cable TV, etc.) and Solid Mineral (Quarrying & Processing).

Other funding prospects are: Manufacturing and Assembly (Small and Medium Scale Plants), Construction (Pre-engineered Buildings & Facilities, Stadiums & Arenas, Industrial Parks, etc.) Agro-Business (Farming & Food Processing), Medical (Pharmaceutical Projects, Supplies & Clinics), Tourism (Amusement Parks, Hotels/Resorts, etc) and Aviation (Used & New Passenger & Cargo Aircrafts, Helicopters, Airport Development & Expansion, Avionics & Spare Parts, etc.)

Highlighting the milestones already attained with the 12,000 Barrels Per Day (BPD) Amakpe Refinery as a case study, Fournie said:

“The Amakpe Refinery is being implemented in two phases, with Phase 1 – 6000BPD Refinery Plant originally estimated to cost about $36.5 million and now revised to cost $43.7 million, including Escalation, and revised Field Erection Costs. Construction of 12KM Dual Steel Pipeline connecting Exxon/Mobile QIT and Amakpe Tank Farm is estimated at $10 million of Additional Cost. The Project is expected to start production by October 2009. Out of the current revised Project cost of $43.7 million, $26.2 million has been expended while $17.5 million is outstanding to complete full funding of the Project.

“UPS Capital/Ex-Im Bank Loan of $10.3 milion is being disbursed to Ventech, based on P&M Construction Progress Payment while Amakpe Refinery has fully paid required statutory Equity Contribution and continues to pay the Counterpart Funds. Akwa Ibom State Government Investment of $8.5 million has also been applied to the Project

“As at June 27, 2008, Ventech achieved 50% Mechanical Completion of the Refinery Plants and Machinery Fabrication, which was certified by visiting representatives of the Department of Petroleum Resources, including Mr. M.D.B. Ladan-Head Downstream, Mr. O.A. Adeleke- Assistant Director, Dr. D.M.E. Eradiri- Chief Environmental Officer, Mr. Oyedele Sangobowale and Mr. Hussaini Basaka-Site Representatives. Based on this development, Amakpe Refinery has qualified to receive $1.2million Security Deposit earlier paid to DPR as a requirement for revalidation of related Refinery Construction License.

“Sterling Bank has approved additional $9.3 million Loan Facility for the Project. Amakpe Refinery is planning to issue 15,000,000 Shares of Common Stock of the Company for sale to Private Investors. The Private Placement is being packaged by Financialbridge and Sterling Bank for issuance by Sterling Capital Markets (Issuing House).

To start -up the process of obtaining required funding, a Company is required to retain the services of Financialbridge which will develop a Bankable Business Plan that will satisfy U.S. Export Financial Market requirements and procure the Project Loan.

The retainership will further cover service coordination of Project Loan Packaging and Procurement that will involve the Borrower and the U.S. Lender. The U.S. Lender will underwrite the submitted statutory documentation leading to Loan approval, following which the Lender will request the U.S. Ex-Im Bank for issuance of Political Risk and Medium-Term Insurance/ Comprehensive Credit Guarantee before disbursement of related Loan. The process of underwriting the Loan through approval and disbursement could be concluded within 45-90 days after the U.S. Lender receives the complete statutory documentation as outlined.

Financialbridge be responsible in carrying out tasks that will result in the successful procurement of U.S. Loan for the implementation of the project which include: Conduct of Feasibility Study and preparation of Bankable Business Plan that will satisfy U.S. Export Financial Market requirements. The Business Plan will be concluded within 30-45 days from receipt of Engagement Fee, Data from Market Research as well as Borrowers information. The draft of the Business Plan will be forwarded to the Company for approval and possible input before production of final Document.

FinancialBridge also processes Due Diligence, Approval and Disbursement of Project Loan within 45-90 days of the U.S. Financial Institutions receiving and underwriting complete statutory documentation from the Nigerian company.

If required, Financialbridge can also be engaged to Package and Instrument Private Placement of Shares of Common Stock of the company to raise additional funds through Private Equity Investment, utilizing a local Nigerian Bank as Issuing House.

The Funds raised through the Private Placement could be applied to fund Local Project Site Development and In-Country Costs as well as required Equity Contribution, etc.

The Nigerian company shall be responsible for the following within the requirements for successful Loan Procurement, including: Obtaining Nigerian Bank Guarantee for 85% or 75% of the total U.S. Loan amount to fund the Project, depending on the Ex-Im Bank or OPIC requirement.

Securing all required Permits and Licenses from Nigerian Regulatory Authorities, submission of three years audited financial statements of the Nigerian bank as certified by a renowned accounting firm. Provision of Equity Contribution of 15% of total U.S. costs content within the overall Project cost for U.S. Ex-Im Bank Guaranteed Loan to be added to 85% of total U.S. cost content as Loan, or 25% as statutory Equity contribution of total Project

Confirming Energy Industry Development Initiative’s (EIDI) relationship with FinancialBridge, the organisation’s Chief Executive Officer, Mr. Tom Obaseki said FinancialBridge has already shown interest in facilitating funding for some project ideas it had forwarded to FinancialBridge.

“As we speak, we have forwarded project proposals for the establishment of 5-7 MMSCFD Modular Gas Gathering, LPG and Lean Gas Production Plant in Nigeria, the establishment of Integrated 55MW Power Plant, Natural Gas Gathering and LPG Processing Project in Nigeria and for Development of Pre-engineered Medical Clinic & Diagnostic Centers, Pharmaceutical Project and Customized Medical Trailers & Boat Clinics, complete with Outreach Medical Technicians Training Support.” Obaseki explained.