NEXIM injects $10m to rehabilitate Golden Guinea Breweries
Posted by Mayowa Okekale, Abuja | 20 April 2017 | 2,684 times
•NEXIM Bank Acting MD Bashir Wali.
The Nigeria Export Import Bank (NEXIM) says it has injected $10 million for the restoration and rehabilitation of the abandoned Golden Guinea Breweries Plc.
The loan facility was obtained by a core investor, Pan Marin Limited, in Umuahia, Abia State, with about 90% control for a medium term, in its bid to revamp the business activities of the breweries.
Mr. Bashir Wali, Acting Managing Director, NEXIM Bank, confirmed during a chat on Wednesday that the loan has a tenure of six years, 18 months moratorium on interest and 24 months on principal with an interest of 14% per annum.
Wali stated that the project has huge potentials to generate employment with projected direct and indirect employment of about 1,200; and projected annual exports based on the company’s plan put at about US$4.17m based on 30% performance of its export strategy.
The core investors are said to be planning to restructure and turn around the company’s misfortune through a technical partnership with Hormes GmbH of Germany who performed the technical review of the brewing assets.
The company was said to have executed a management and operating agreement with Brewtech Gmbh to manage the production process for an initial period of five years in the first instance from the commencement of operation but subject to renewal as may be mutually agreed by the parties and agreed upon for a further three years in each instance.
NEXIM bank had expressed its commitment to support local content initiative to generate employment that will improve Nigeria’s non-oil foreign exchange revenue.