Wholesale Banking Products for SMEs

1. Wholesale Banking Products for SMEs www.firstbanknigeria.com

2. Outline

3. BONDS & GUARANTEES Bonds & Guarantees (B&Gs) Advance Payment Guarantees (APG) Product Definition Product Definition B&Gs are instruments issued by the bank guaranteeing beneficiary against the default or insolvency of the contractor up to the limit of the bond. They could be: Cash and Non-Cash backed. To mitigate performance risk challenges. APGs are demanded by Principals from contractors. The sum paid is a percentage of the contract value. Key Features Benefits to SMEs Benefits Key Features Key Features Benefits • 1% guarantee fee for all APG transactions • Maximum tenor is in line with the underlying beneficiary’s request, subject to a maximum of 18 months • Transaction must be fully disclosed and legitimate in line with the laws of the Federal Republic of Nigeria • Maximum tenor is in line with the underlying beneficiary’s request, subject to a maximum of 12 months • Multiple variants to accommodate flexibility e.g. Bid &Tender, Performance Bond,, Excise & Duty Bond etc. • Quick Turnaround Time • Minimal fees which can be negotiated • Initial Disbursement is clean i.e. without collateral • Quick Turnaround Time • Adherence to new CBN pricing tariff

4. Key Distributorship Finance (KDFs) Petroleum Dealership Finance KD for FMCG Telecoms Distributorship Finance Cement Distributorship Finance ProductDefinition Product Definition Product Definition Product Definition To finance stock of white petroleum products (PMS, AGO & DPK) for Dealers who are registered IPMAN or Dealers of major Oil Marketers. To provide finance for purchase of products by Key Distributors of Fast Moving Consumer Goods (FMCG) who are in the Bank’s approved list. To finance Telecom Distributors to meet their credit needs toward the distribution of goods (excluding CDMA handsets). To provide flexible short-term facility to meet working capital requirements in the distribution of cement from approved manufacturers. Benefits Key Features • Availed either as an Overdraft, Bank Guarantee or a combination of both • Facility Tenor could be as long as 12 months with: • 90 days transaction cycle for FMCG & Cement • 30 days transaction Cycle for KD Petroleum • 7 days for Telecoms • Enables SMEs buy products on cash & carry basis • Flexible collateral structure • Competitive pricing • Higher volumes of transaction which leads to higher margin (income)

5. OTHER SME PRODUCTS Trade Invoice Discounting Finance Product Definition Product Definition • International trade is the exchange of goods and services between countries with contract of sale and trade settlement. A product that is sold to the global market is export, and a product that is bought from the global market is import . • A self-liquidating facility to provide immediate funding to customers of the bank awaiting payments for goods/services rendered to reputable companies in the banks approved list. Key Features Benefits to SMEs Benefits Key Features Key Features Benefits • Maximum tenor of 60 days with 30 days option to rollover • Age of Invoice to be discounted is 45 days • Invoices of executed jobs must be from a Principal acceptable to the Bank • All Visible Trade transactions are processed via a Form M • Parties to the establishment of an LC are Issuing Bank, Applicant, Beneficiary, & Advising Bank • Bills for Collection can either be: Documentary Collection; i.e. collection of commercial & financial documents, Clean Collection; i.e. collection of financial documents only • Invisible transactions are processed via Form A. • Funding made available to SMEs for the importation and exportation of various products • Flexible collateral structure • Competitive pricing • SMEs can meet urgent need for working capital while awaiting payment for jobs executed • Up to 70% of Invoice can be financed • Quick access of facility amount • Competitive pricing

6. Q & A

7. Thank you www.firstbanknigeria.com February 2014