1D1F-CNBM Facility

Facility Overview• The CNBM facility is a turnkey project financing option secured by Association of Ghana

Industries (AGI) and 1D1F partner banks for private sector led industrialization under the One-District, One-Factory Project .

• The facility is being offered by China National Building Materials International (CNBM Group), a China based Investment & Trading Entity with support from Ghana EXIM Bank and other local 1D1F Partner Banks.

• The facility offers:• financing support of up to 85% of total Capital Expenditure required for factory setup. This

comes in the form of factory equipment and machinery covered by warranty and strict fitness of purpose clauses

• Technical Management and Training of up to 2 years (By which time factories should be setup and operational)

• Working Capital support from local 1D1F Partner banks• Guaranteed market for selected products

Target Industry Areas

The facility covers a number of industry areas including:

• General Manufacturing

• Agriculture, Agribusiness & Agro processing

• ICT

• Garments & Textiles

• Renewable Energy

• Waste Management

• Pharmaceuticals & Cosmetics

• Tourism & Creative Arts

Target Industry/Commodity Areas

Commodities targeted under this facility are high potential commodities identified in the various districts in Ghana. These include:

Cassava Cocoa Plantain

Cashew Maize Wood

Pineapple Herbs & Spices Aluminum & other metals

Poultry Sisal Coconut

Shea Butter Salt Fish

Clay Orange Banana

Oil Palm Rice Soy

Tomato Cotton Waste

1. Submission

2 Initial Screening

•Evaluation by AGI*

3 Evaluation

4 Evaluation Review & Approval

5 Due Diligence & Credit Assessment

•

6. 1st Approval

7. 2nd Approval

8. Signoff & Offer Release

• Initial screening will be done to select applications that match 1D1F objectives and have good industry recommendations• *Contact with Applicant for technical assistance may be necessary• TAT for process is 10days, provided all necessary documents are submitted.

Screened Applications

Recommended Projects with Evaluation Summary

Projects Approved for lending

Projects Approved for EXIM underwriting

•Evaluation by 1D1F/ CNBM Invoice confirmation *

•Evaluation by EXIM *

Approved Projects

Evaluation Review and approval by Technical Committee.

Due Diligence & Risk Analysis by Lending Bank*

Approval from lending Bank.

By EXIM Bank Sign off by 1D1F & Consent from 1D1F to CNBM; Release of Offer

Submission of Application via ID1F /AGI.

Initial Screening by Receiving Institution*

1D1F-CNBM Process Flow

Key Stakeholder Institutions

• One District, One Factory Project

• Ghana EXIM Bank

• Association of Ghana Industries

• China National Building Materials International (CNBM Group)

• Local 1D1F Partner Banks including:• Ghana Commercial Bank

• Universal Merchant Bank

• Access Bank

Roles of Key Stakeholder Institutions

One District, One Factory Project

Secretariat

•Provide facilitation support for

• land acquisition, district readiness,

•marketing support,

•export support, research

• raw material development

•Compliance & certification.

Ghana EXIM Bank

•Underwriting of Bank Guarantee

•Evaluation of Project Proposals

• Final Approval of Proposal, if required.

•Provide funds for raw material development.

Association Of Ghana Industries

• Submission point of Proposal

•Evaluation of Proposal

•Assist with monitoring of projects after offer has been released.

•Partner with relevant institutions for provision of Technical Assistance

Other Local 1D1F Partner Banks

•Assign Desk officers dedicated to handling all 1D1F issues

•Provide Bank Guarantee for facility inclusive at interest rate of all fees & charges

•Undertake Due Diligence, Credit assessment & Risk analysis of applicant.

•Provide Working Capital Support.

•Engage monitoring company approved by Ghana EXIM Bank

CNBM Group

•Provide at least three invoices for confirmation by Technical Committee & applicant.

•Undertake feasibility, if required.

•Provide equipment for setup.

•Provide technical management & training

Facility Terms

• Interest Rate : 7.5% (This covers entire facility i.e. CNBM CAPEX Support, Bank Guarantee and Processing fees)

• Collateral: Factory setup and Equipment

• Global limit: Not fixed. 85% of total CAPEX required.

• Tenor: 8-25 years.

• Moratorium: 2-3 years. (Negotiable as factory should be well into production before loan repayment starts)

• Entrepreneur’s Matching Funds: 15% of total CAPEX required. (Can be in cash or kind)

Who is Eligible

• An applicant is considered eligible for the offer when the applicant can/has:• Prove arrangement to guarantee raw material supply.

• prove he/she has secured/is securing land and platform for factory.

• Provide a feasible project plan

• Provide 15% of CAPEX required for factory setup and has a good credit rating to access working capital support.

• An experienced team with the required skills to manage the factory.

• Provide a solid succession plan

How to Apply

•Application is done via •One-District, One-Factory District offices•Association of Ghana Industries (AGI) Offices•Online at 1d1fghana.org/apply•Email: 1d1f@moti.gov.gh