By Peter OBIORA InvestAdvocate

Lagos (INVESTADVOCATE)-The Central Bank of Nigeria (CBN) said on Wednesday it’s offering nine (9) percent interest rate per annum on the newly established N300 billion Real Sector Support Facility (RSSF), according to guidelines released.

The CBN said the nine (9) percent per annum is payable on quarterly basis and it shall be entitled to earn three (3) percent as interest and the banks, a six (6) percent spread.

“The facility shall be administered at an all-in Interest rate/charge of 9 percent per annum payable on quarterly basis. Specifically, the Central Bank of Nigeria shall be entitled to earn 3% as interest and the Banks, a 6% Spread,” the released guideline said.

Apart from the nine (9) percent interest rate, the loan amount is minimum of N500.0 million up to a maximum of N10.0 billion for a single obligor. “Any amount above N10 billion requires the special approval of management of the apex bank,” the guideline disclosed.

The CBN says all Deposit Money Banks (DMBs) and Development Finance Institutions (DFIs) are eligible to participate in the facility.

According to the CBN, repayments under this facility shall be amortised and loans shall have a maximum tenor of 15 years depending on the complexity of the project and shall terminate on December 31, 2030. “Each project tenor shall be determined in relation to its cash flow and life of the underlying collateral,” it said.

The CBN in a bid to unlock the potential of the real sector to engender output growth, value added productivity and job creation established the N300 billion Real Sector Support Facility (RSSF).

The facility will be used to support large enterprises for startups and expansion financing needs of N500 million up to a maximum of N10.0 billion.

The CBN says the real sector activities targeted by the facility are manufacturing, agricultural value chain and selected service sub-sectors.