₦ 500Million Green SME Financing – A partnership Between NCIC and ProvidusBank.

Background:

ProvidusBank and Nigeria Climate Innovation Center (NCIC) have entered a partnership to provide access to finance for green eligible SMEs in Nigeria for the purpose of scaling green businesses, creating wealth, reducing unemployment by generating green jobs, driving the private sector, and improving the country’s GDP, while keeping the environment safer, cleaner, and more sustainable.

Fund Size:
The said partnership with ProvidusBank has structured a credit line of N500 Million exclusively to finance eligible Green SMEs in Nigeria.

Business Areas Eligible for Funding:
The fund is designed to finance climate-smart businesses playing in the following green thematic areas such as – Renewable Energy, Waste Management, Smart Agriculture, Water Solutions & Innovation, including Circular Businesses with positive environmental impact.

To be eligible for financing, the SME must fulfil the following conditions:

a. The Company must have operated for a minimum of 12 months as evidenced by the Certificate of Incorporation, Business Registration, Date of Incorporation/Registration.

b. A review of customer’s 12 months’ bank statement from the primary bank used by the business.

c. Extracted debit and credit turnover analysis of the bank’s statement.

d. Operational cash flow from business operations must be able to service loan obligations regardless of other sources of income. Other sources of income are secondary.

e. Verification of ALL Customers supporting documents.

f. Business location shall be a verifiable office in use by the borrower.

g. Directors and Promoters of the corporate entities/Business Name must have BVN.

h. Customer must have good credit history. This will be confirmed via a credit check on the client (Promoters/Directors) and Business.

i. KYC documentations must be in place (No deferrals).

j. Satisfactory legal search report on the company (the search must not be more than six months old).

k. Customer’s stock in trade must not be in the prohibited list of items.

Funding Limit:

The maximum loan amount for a borrower is capped at N10 Million. However, an approval can be sought for higher amounts in the event the borrower’s cashflow demonstrates the capacity to borrow more than the capped amount.

Security:
The loan will be collateralized or secured through the following means:

a. All Asset Debenture on the Company’s Floating and Fixed Assets both Present and Future.

b. Legal Mortgage on a property in the name of the Company or its directors in acceptable locations- (in Lagos, Abuja, or Port Harcourt)

c. Personal Guarantee of the Managing Director of the Company supported with a notarized statement of personal financial net worth (Applicable only for limited liability companies)

Documentation:

If screened and selected as a potential borrower, documentations for financing will include the following:

  • Valid means of identification (includes National ID card, International Passport, Drivers’ License, & other acceptable means) for individuals and promoters of business name registration
  • Company’s Memorandum and Articles of Association as filed with the Corporate Affairs Commission (Business name and corporate entities)
  • Loan application letter
  • 12 Months bank statement
  • Credit Bureau Checks
  • Company profile
  • Management profile
  • Cash flow projection
  • Relevant operating license
  • Duly executed Loan offer letter
  • Loan Agreement
  • Advisory fee Agreement
  • Domiciliation of cash from business – Opening ProvidusBank account
  • Board Resolution for Corporate entities; Letter of Undertaking for Business Names
  • Evidence of KTC Adequacy

If you are a Nigerian Green SME that meets all the conditions stated for eligibility, kindly click on the link below to apply for the ProvidusBank/NCIC Green SMEs Financing Scheme: