In order to help different kinds of End Users (Commercial and Residential) purchase dependable solar solutions, the Bank of Industry (BOI) has reviewed its Solar Energy Fund and converted it into an N6 billion Solar Energy Fund. End consumers or solar energy enterprises can obtain the cash directly from BOI or indirectly through Deposit Money Banks (DMBs) or Microfinance Banks (MFBs). The following characteristics apply to the item:
Target Market
The target market includes the direct beneficiaries of the funds as follows:
i. Homes and Businesses (Agribusiness, Solid minerals, Artisans, Service and Hospitality industries, etc)
ii. Project Developers (providing solar solutions for Residential Estates, Educational Facilities, Healthcare facilities, etc)
iii. Deposit Money Banks (DMBs)/Micro Finance Banks (MFBs) (through on-lending.
Eligibility CRITERIA
Ø There must be clear demonstration of viability for business operations vis-à-vis cost-savings, profitability, etc.
PROJECTED IMPACT
Cleaner and healthier environment from reliable and sustainable energy source.
· Attendant reduction in greenhouse gas emissions from utilizing fossil fuels, thereby contributing to climate change mitigation.
· Boost inclusive economic growth and development, especially in view of the current economic situation in the country, leading to job creation, poverty alleviation.
· Improve quality of life and general welfare of the citizenry.
| PROGRAM LIMIT | N6.0 billion |
| SINGLE END-USER LIMIT | Maximum of N350 million per end-user |
| FUNDING STRUCTURE: On-lending | Micro – users requiring less than N5 million per end user· Funds for this category will be disbursed under an on-lending arrangement with Deposit Money Banks (DMBs)/Micro Finance Banks (MFBs). (the single obligor limit per user shall not be more than N350m) |
| SMEs & LE | (a.) Mini –users: Requiring between N5million – N20million per end user (b.) Standard users: Requiring between N20million – N350million per end user This limit is available to existing and new SMEs and Large enterprise customers. Funds for this category will be via direct lending from BOI. The Debt shall not exceed 80% of the total project cost, while the Equity contribution shall be a minimum of 20% of the project cost (i.e. Debt: Equity ratio of 80:20). |
| Project Developer | The limit for this category of customers (solar energy developers) shall be between N20m –N350m The fund shall be for the following: (1.) Various categories of SMEs and LEs /clusters. (2.) Clusters of Business enterprises (micro). (3.) Residential estate. (4.) Shopping malls and quick service centers. (5.) Hospitals and educational facilities etc. |
| PRICING | A. For Direct Lending by BOI:Interest rate:· 9% per annum payable at the end of every month or quarter. Fees:· 1% Appraisal Fee· 1% Commitment Fee· 0.125% Monitoring Fee (to be paid quarterly) B. For On-lending: To be referred to the participating DMBs/MFBs |
| TENOR | A. For Direct Lending by BOI:· Maximum of Five (5) years inclusive of the moratorium period.· Moratorium of three (3) – six (6) months on principal repayment for existing businesses.· Moratorium of six (6) – twelve (12) months on principal repayment for new businesses. B. For On-lending: We will refer to participating DMBs/MFBs |
Latest Monthly Grant Opportunities you can Apply for
Application
For more information on how to apply
Visit the BOI-Solar Energy Fund Website
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