Page 6 - INSIDE ACCESS JULY 21 4TH EDITION

AGRIC BUSINESS
PRIVATE SECTOR LED-ACCELERATED AGRICULTURAL DEVELOPMENT SCHEME (P-AADS)
The Private Sector-Led Accelerated Agricultural Development Scheme (P-AADS) is a new CBN initiative designed to complement the existing State Government led Accelerated Agricultural Development Scheme (AADS). The broad objectives of P-AADS is to facilitate increased private sector agricultural production of staple foods and industrial raw materials, as well as support food security, job creation (for a minimum of 370,000 youths directly) and economic diversification.
Features
· Target Market:
- Agro-processors of agricultural commodities engaged in backward integration
- Prime anchors and commodity associations participating under the Anchor Borrowers'
Program (ABP) with evidence of contiguous land readily available for clearing and cultivation of agricultural commodities; and other companies and individuals with evidence of ownership of contiguous land readily available for clearing and cultivation of agricultural commodities
· Focal Commodities: Rice, maize, cassava, cotton, wheat, tomato, poultry, fish, sorghum, livestock/dairy, oil palm and cocoa
· Single Obligor Limit: N2bn
· Term loan only
· Maximum interest rate: 5% per annum, inclusive of all charges (till February 2022).
Interest rate reverts to maximum 9% p.a. thereafter
· Tenor: 1 year for Annual Crops, 10 years for Perennial Crops (with maximum 1year
moratorium period as may be applicable).
· Repayment: Based on the cash flow of the financed commodity
· Collateral: Title of the cleared land and other acceptable collateral prescribed under the ABP.
CBN shall bear 50% of the credit risk in the event of default by the participant
More information:
AgricBusinessGroup@accessbankplc.com