In an effort to provide access to much needed financing for heavy equipment for road construction, agribusiness, mining, forestry, and other sectors; Nationwide Equipment (NWE) of Jacksonville, Florida (USA) has made an offer to work with Ecobank, United Bank for Africa (UBA), and International Bank (IB), to provide US$25 million in structured financing for the heavy equipment market in Liberia. If successful and if there is a market demand, the Company intends to expand the program as the local marketplace may need.
The arrangement allows for the local banks to conduct their usual underwriting due diligence on each transaction and, depending on the transaction, provide customers approved for loans up to three years for settlement of loan facilities obtained through the program. For each transaction, the banks will have access to capital through Nationwide’s Supplier Credit Program and will not have to tie up their own funds for heavy equipment purchases. The banks in turn will issue the necessary stand-by bank guarantees as credit enhancement to secure each transaction they underwrite for their customers. This is a clear opportunity for road contractors, engineers, trucking companies, miners, farmers and others to more easily import heavy equipment with minimal down-payment and longer than usual tenor to pay off the equipment loans. This will allow the banks access to additional resources and capital beyond their own to meet the needs of its customers, while Nationwide supplies the market.
“We are more than happy to work with the banks in Liberia to provide additional access to capital to finance acquisitions of heavy equipment. We have extensive experience in Africa, working with banks to make deals happen as we leverage the banks’ knowledge of their local markets. So, this is a good opportunity for us as well as good for Liberia given the infrastructure development needs it has,” says Mr. Ed Kostenski, President and CEO of Nationwide Equipment. For his part, Olalekan Balogun, the Managing Director of UBA, one of the banks engaged said, “I look forward to a mutually beneficial relationship.”
Founded in 1983, Nationwide Equipment has served customers in 60 countries, and specializes in sale and financing of agricultural, mining, construction, energy, oil and gas, marine equipment, emergency-ambulatory, waste-sanitation, trucking-logistics and much more. As an Industry leader, Nationwide Equipment has experience and resources to provide high quality equipment and world-class after sales support.
The company’s Africa Sales and Marketing Director, Henrique Caine added, “the opportunities for development in our sub-region are immense, and so this credit arrangement with the commercial banks is very much on time, we look forward to providing a lot of creative and flexible financing solutions if the market demands for it.”
For more information about this program, customers may contact +231-776857538 or +231-880212525, or any of the banks mentioned.