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Oil and Gas Contract Finance
The product is designed to meet the funding requirements of indigenous oil and gas companies who are either customers or prospects of FirstBank.
Loan Information
The product is designed to meet the funding requirements of indigenous oil and gas companies who are either customers or prospects of FirstBank.
- It is self-liquidating: The facility is contingent upon receipt of contract proceeds after successful completion of milestone.
- The facility is short tenured: The facility tenure is mostly between 90-360 days depending on the contract being executed.
- The bank provides up to 70% of cost of contract execution and not cost of contract value.
- The product has essentially domiciliation of contract proceeds as the sole comfort except where facility is in excess of N50million for Project Finance which must be secured with tangible collateral.
- Increased profitability.
- Contract Documents.
- Financial statement (audited).
- Evidence of past job(s) executed (copies of payment advice).
- Customer’s application Letter.
The product is available to both new & existing customers of the Bank who can apply through any of the FirstBank branches.
The facility shall be granted against valid invoices raised on approved obligors. The customer irrevocably assigns proceeds of the discounted invoices to the Bank and undertakes to channel all payments through its account with the Bank. The Bank reserves the right to verify invoices and payment obligations with the obligor. Any invoice that becomes disputed, cancelled, or unpaid at maturity shall immediately become due and payable by the customer. Interest and fees shall apply as approved by the Bank.
