8 December 2017

Nigeria: Chinese Bank Approves U.S.$42.5 Million Loan for Enugu Housing Scheme

Enugu — CHINESE biggest bank, the Industrial and Commercial Bank of China, ICBC, has approved $42.5 million loan for a multi housing development scheme, HELIU residences in Enugu.

The loan was secured under the guarantee of the Chinese Credit Insurance Corporation, SINOSURE, for the construction of duplexes, provision of electricity, roads, water and other facilities by the China Shenyang International Economic and Technical Corporation Limited, CSYIC.

Making the disclosure to newsmen in Enugu, yesterday, Managing Partner of F.I.T. Consult, the Nigerian Developer building the HELIU Project, in partnership with the Enugu State Government, Chief Loretta Aniagolu said, the deal was sealed after signing Commercial Contract with CSYIC, in Enugu.

Aniagolu said the Chinese team led by the CSYIC President, Madam Tang Lezhen signed the documents with F.I.T. Consult, for financing of the contract.

Aniagolu said: "We wanted to bring the project with our own funds to a certain level before the Chinese come in, so that they don't start from scratch and for them to know that we are very serious. We have finally tied up everything on this visit.

"The bank funding for the project is from China, through the Industrial and Commercial Bank of China, ICBC, which is the biggest bank in the world, with its 2016 turnover at about $2.3 trillion. The entire transaction of $42.5 million is being guaranteed locally by Access Bank Plc."

According to her, the interest rate is four per cent, while the period for repayment of the loan is eight years.

She added that two years moratorium is for construction of the projects while 6 years is for the repayment. "So it is a fantastic arrangement," she said.

Aniagolu expressed optimistism of the loan repayment, noting that they were quite sure of the market in the South-East zone, particularly with the country gradually coming out of recession and having already received deposits on over 50 percent of the serviced plots.

"Secondly, we are also working with the Imperial Mortgages Limited that is providing mortgages for home buyers, making it easier for them to pay for the houses .

"Presently, of the 60 bungalows we've done so far, most have actually been sold on a cash basis , while Imperial Mortgages is providing mortgages for the rest. So, we have an arrangement where we are sure that in those eight years or less, we should be able to repay funds."

She further disclosed that over N2billion has been spent on various aspects of the project, such as earth works, 20 kilometers drainage, culverts, buildings, etc.

She further remarked that they were excavating for a Dam for independent water supply in the residence, adding that

electricity would also be generated using Low Poor Fuel Oil, LPFO.

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