Section A: Eligible Borrower

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An Eligible Borrower must satisfy the following criteria as a minimum:

Qualifying Contractor: Must be registered with SPDC, incorporated in Nigeria and majority of its issued shares legally and beneficially owned by person(s) domiciled or incorporated in Nigeria

Niger Delta Indigene Involvement: Must be an indigenous Contractor operating in the Niger Delta Area, and at least 30% of whose membership and workforce are drawn from member states of the Niger Delta Development Commission (NDDC) as defined in the NDDC Act.

Relevant Experience: Must have successfully performed and completed two or more contracts for the provision of services for SPDC, with one of such contracts concluded or entered into within the immediate preceding two years. Preference shall be given to contractors with at least five successfully completed oil services contracts with SPDC.

Financial Records: A contractor will produce audited financial statements and/or management accounts in relation to each of its financial years, audited by auditors licensed to practice in Nigeria.

Debt to Equity Ratio: This ratio shall not exceed 70:30.

Accounts in DBL: A contractor shall agree to open and maintain a Naira account and a US Dollar account with Diamond Bank Limited.

Credit Appraisal: A contractor shall meet and conform to Diamond Bank's lending criteria, including assessment of business growth potential, clear focused line of business and management capacity.

Past Records: A contractor shall not, so far as Diamond Bank is aware, be in breach of or in default under any other agreement to which it is a party or which is binding on it or any of its assets to an extent or in a manner which might have an adverse effect on the contractor, its businesses, its contracts or its ability to perform under its contracts.

Exclusion List: A contractor shall not be engaged in any IFC Category A Transaction or in any IFC Excluded Activities. (Details of these are provided).

Environmental Capacity: If necessary, Diamond Bank will assess the contractors ability to manage environmental impacts according to IFC criteria.

Section B: Eligible Transactions

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1. Contractor: The transaction must be with an Eligible Borrower.

2. Loan Size: A loan to a qualifying contractor shall not be less than US$50,000 nor greater than US$1.5million.

3. Qualifying Contracts: Shall be SPDC Contractor with a minimum remaining duration of one year (i.e. its remaining duration shall not be less than the tenor of the loan).

4. Collateral: The primary collateral shall be the SPDC contract(s) and such additional collateral, such as real or personal property, as Diamond Bank Limited may deem necessary.

5. Currency of Loan: US Dollars.

6. Countries of Procurement: The proceeds of the Loan must be applied and used solely in financing activities or assets in countries, which are members of the World Bank. For list of member countries, see http://www.worldbank.org/ search for "IBRD members"

7. Loan Amount: The proposed loan must not exceed the lesser of:

• 65% of the aggregate value (net of taxes and retentions) of US Dollar and Naira denominated components of the SPDC contract(s) to be used as collateral in respect of the proposed Loan or
• 80% of the aggregate value (net of taxes and retentions) of the US Dollar denominated component of the SPDC contract(s) or
• 85% of the lesser of the consideration for or fair market value of, any equipment or assets to be financed by the proceeds of the proposed Loan.

8. Debt Service Ratio: The ratio of EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation) in respect of any Relevant Period to Consolidated Debt Service for such Relevant Period of the Eligible Borrower shall not be less than the ratio of 1.4:1, Diamond Bank will determine this ratio for an Eligible Borrower based on the relevant financial information.

9. Contract Financing Ratio: The debt to equity ratio in respect of financing a contract (i.e. an eligible transaction) shall not exceed 85:15. The maximum financing that will be provided will be 85% and the contractor will be required to contribute a minimum of 15% of the total cost of executing the contract.

10. Loan Tenor: shall not be less than 12 months nor longer than 36 months and must not exceed the last date for payment of any Receivable under the related SPDC Contract(s)

11. Purpose of Loan: Any proposed loan shall be used for financing capital investment, but can include a component for working capital purposes. Disbursement of such Loans may be made directly to any supplier in respect of the relevant equipment or goods to be financed.

12. IFC's Exclusion List: Activities to be financed shall not be IFC Category A Transaction or on the Excluded Activities List.

13. Due Diligence: The transaction must fully satisfy the due diligence criteria of Diamond Bank. Diamond Bank will make determination of eligibility based on its due diligence criteria in its sole discretion.

14. Repayment Schedule: The repayment schedule of the proposed Loan shall match as far as possible the payment of proceeds schedule of the SPDC contract(s) to be used as collateral for the proposed Eligible Loan.

Section C: Loan Application Steps

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Step 1 Make enquiries or pick-up Application Pack from any DBL branch nationwide.

Step 2 Review Scheme Guidelines in the Application Pack and determine if you meet the provisional Eligibility Criteria.

Step 3 Complete and return Project Summary Form to one of DBL designated branches in the Niger Delta area (provided on page 4 of the Brochure).

Step 4 Based on Project Summary Form, DBL will carry out preliminary assessment of customers request to determine whether contractor meets the Eligibility Criteria for the scheme.

Step 5 DBL will contact in writing qualifying contractors and request for more detailed project information, and completion of a Pre-credit Approval Due Diligence Checklist and a Letter of Consent to SPDC, for SPDC to corroborate information provided by Contractor.

Step 6 DBL will send the Letter of Consent to SPDC to corroborate information provided by the contractor.

Step 7 Based on all the information gathered, due diligence conducted and DBL credit appraisal criteria, a loan request package will be presented for approval.

Step 8 Upon approval, DBL will inform the successful contractor in writing of the approval of his request, send an Offer Letter and other approved loan agreements and documents.

Step 9 The approved borrower shall accept Offer Letter and satisfy all documentation requirements.

Step 10 DBL will disburse funds in line with project requirement as advised in the Offer letter.

Step 11 The borrower shall register for and complete the Scheme's mandatory training course as will be advised by Diamond Bank, within six months of loan disbursement.

Step 12 The final decision to approve the loan for any Contractor is entirely at the discretion and sole judgement of DBL. The commencement and participation of any Contractor in the Loan Application steps does not constitute an agreement or commitment on the part of DBL to grant the loan.

For further enquiries, please email This e-mail address is being protected from spambots. You need JavaScript enabled to view it Tel. 0700-300-0000