Esteemma Diamonds Global Investment Limited (“Esteemma” or “EDGIL”) is an agro-allied company that focuses on processing and trading both cashew and sesame seeds. The company was incorporated in 2011 as a limited liability company under the Companies and Allied Matters Act 1990 (CAMA) of the Federal Republic of Nigeria, with the registration number RC 986244. The promoters formerly operated under the name “Qui Trade and Support Limited” which was founded in 2003.
The company engages in the sourcing and processing of high-quality raw cashew and sesame seeds for exportation and local consumption. The company also has a semi-automated cashew processing line with the capacity to process 4 tons of raw cashew nuts per day. The processing equipment at the factory confirms that the company can export one container of 20 tons of cashew kernels per month to earn sustainable foreign exchange. Esteemma services both local processing companies and exporters. During the last two years, the company consistently recorded a turnover of over One Billion naira; turnover was N1.347 billion and N1.386 billion in the years 2016 and 2017 respectively.
With the nascence of the forthcoming cashew season which is expected to commence in February, Esteemma is seeking additional finance of One Hundred Million Naira (N100m) as working capital to further its operations (cashew trading) and meet the demands of its target market. It is also pertinent to note that Esteemma received an investment of N5million (one-year investment) from investors in May 2018 for its cashew processing factory and has paid interests monthly without any delay. A debt service reserve account has also been created and is being duly funded by the customer towards retirement of that principal on maturity.
Borrower – Esteemma Diamonds Investment Global Limited
Loan Size – N100m (Hundred Million Naira)
Tenor – 4 months
Interest rate – 21% per annum
Repayment – Interest – Payable monthly
Principal – Bullet payment at maturity
Use of proceeds – Working capital for operations
RISK AND SECURITY
- Credit risk – is the risk that principal or interest or both may not be paid as at when due.
- Diversion risk – is the risk that fund requested mayn’t be used for its sole purpose or what it was originally intended for.
- Operational risk -is the prospect of loss arising from business processes such as mechanical failure, human error etc.
- Inflation risk – is the prospect of loss arising from a decline in purchasing power of money.
The following securities have been provided to mitigate the above risks and other uncertainties;
- Personal guarantee of the key promoter with notarized statement of net worth.
- Undated cheque(s) for the principal amount.
- PearlMutual shall continually monitor the business closely by visiting the warehouse regularly and requesting management account information monthly.
- Letter of Stock Hypothecation
- An insurance policy of Esteemma’s warehouse with our insurance partner- Leadway Assurance Company Limited