BY ESE DIBEBI
The Bank of Industry (BoI) has announced its N1.0 billion BoI Nollyfund, which according to it was set up to provide structured finance to the Nollywood.
BoI Nollyfund is expected to tackle the lack of access to structured finance and distribution channels which have no doubt been the major challenges confronting the industry, apart from piracy.
In order to effectively manage the industry’s peculiar risks, a 10-man advisory panel made up of industry experts has been constituted and will assist the bank in reviewing each proposal. As such, the fund is operated solely by the Creative Industry Group.\
According to a release by the bank, key features of the fund include:
FUND SIZE: N1.0 Billion
ELIGIBILITY: The fund shall be used for film production value chain (i.e. from pre-production to post-production)
SINGLE OBLIGOR LIMIT: N50 million
INTEREST RATE: 10% per annum
TENOR: Maximum of 2 years including 1 year moratorium period
Copyright Assignment to BOI.
Personal Guarantees of Producer and any other individual of repute.
The distributor would issue Minimum Guarantee (MG) to cover the full value of project plus interest element for the period.
The distributor would issue an undertaking to remit all cinema proceeds of the film based on agreed arrangement to designated bank.
The Distributor shall make a security deposit of 5% of the loan amount.
Domiciliation of film proceeds with the selected/accredited MSME friendly banks. BOI would be the sole signatory to the account.
Referral Letter from a Recognized Organized Private Sector (OPS), Guild or Association.
20% minimum equity contribution
SME Funds Department