ANNOUNCEMENT 20 Apr 2017
According to consistent press reports, the Nigeria Export Import Bank on 20 April 2017, announced that it had provided a lifeline credit facility to the Golden Guinea Breweries. The financial amount of the facility is USD 10'000'000.
NUMBER OF INTERVENTIONS
News Express Nigeria. 2017. English. NEXIM injects $10m to rehabilitate Golden Guinea Breweries. http://www.newsexpressngr.com/news/37489-NEXIM-injects-10m-to-rehabilitate-Golden-Guinea-Breweries
Vanguard. 2017 English. NEXIM bank rescues abandoned breweries with $10m loan in Umuahia
Punch Nigeria. 2017. English. NEXIM bank rescues abandoned breweries with $10m loan in Umuahia. http://punchng.com/nexim-bank-revives-moribund-breweries-with-n3bn/
Independent Nigeria. 2017. English. Golden Guinea Breweries Gets NEXIM Bank’s $10m Lifeline. http://independent.ng/golden-guinea-breweries-gets-nexim-banks-10m-lifeline/
According to consistent press reports, the Nigerian Export Import Bank provided a lifeline credit facility to the Golden Guinea Breweries. The credit facility is aimed to enabling the Golden Guinea Breweries to rehabilitate from the continuous financial struggles that it has been facing in the previous years.
According to consistent reports, the loan provided by the Nigerian Export Import Bank is of a 6-year time duration with 18 months moratorium on interest and 24 months on principal. The annual interest rate revolving around this loan is 14%.
Furthermore, the press reports also highlight that the Brewery is planning to utilize this loan for the purpose of boosting its direct and indirect employment to a 1'200 head count -- as well as elevate the corporate exports to USD 4.17 million (based on a 30% performance of its export strategy).
The Nigerian Export-Import Bank (NEXIM) is a Nigerian export credit agency owned by the Nigerian Central and Federal government. The primary scope of the Bank is to provide export credit guarantees and export credit insurance for exports of Nigerian products and services.
Golden Guinea Breweries is a local Nigerian privately held brewing company.
The GTA includes state guarantees and other financial incentives that are likely to affect the restructuring and performance of firms facing international competition, whether from imports, in export markets, and from foreign subsidiaries.