Bank of Industry (BoI) has granted a loan facility of N5.6 billion to Promasidor Nigeria Limited to support its expansion programmes.
Finance Director, Promasidor, Mr. Per Kristensen, who disclosed this in a statement, said the facility would be used for additional machinery, factory expansion and value chain development, which would create jobs for Nigerians and increase the company’s capacity to support the nation’s economy.
He said repayment of the loan was structured over a seven-year tenor, including a 12-month moratorium.
Kristensen stated: “The near single digit interest loan is guaranteed by First City Monument Bank. You cannot compare this with any other commercial loans in the country. What this means is that Promasidor has the needed funds to pursue its growth in machinery, backward integration, production plants and create more jobs.
“The loan comes with comfort because it is denominated in local currency. For the period of seven years, the only risk is the interest rate, which is minimal. We are going to repay in Naira and the process is very transparent. We are excited about the development. It will give us additional opportunity to contribute to the growth of the country’s economy.
“The business is expanding and we need a lot of capital to support that. The injection of the BoI facility gives the management the needed stability and relief to continue to pursue the expansion plans. A lot of expansion activities are ongoing at the factory, and we will continue to see more of that in the next 24 months.”
Promasidor’s Head of Legal and Corporate Communications, Mr. Andrew Enahoro said the company and BoI had shared passion and interest in supporting job creation and the economic growth of the country.
“BoI’s interest is to support business expansion, stimulate jobs and create social values. These are fundamental to BoI’s support for any organisation.”