9th February 2022.

The Managing Director,

Biomedical Limited,
1, Ohimege Road
Industrial Estate,
Gaa Imam, Ilorin.
Kwara State.
Dear Sir,

PROPOSAL FOR BANKING RELATIONSHIP

JAIZ BANK Plc is desirous of establishing a mutually beneficial relationship with Biomedical
Limited and believes we could through our wide range of ethical products and services add value to
your organization. The Bank was licensed in November 2011 by the Central Bank of Nigeria with a
regional mandate to operate as Non-Interest Financial Institution in Nigeria and subsequently
granted a National mandate. It is the premier non-interest bank in Nigeria. The Bank commenced
operations on the 6th of January 2012 on a foundation of trust, professionalism, and excellence to
deliver innovative financial solutions and exceptional customer experience. Permit us, therefore, to
formerly introduce our Bank to you.
The bank commenced business with a capital base of N6billion (USD31million) with 3 branches
(Abuja, Kaduna, and Kano). The bank recorded tremendous growth through the years with over
N17. 8Billion and 40 Branches at the end of 2020. The Bank's Total Assets at the end of 2020 were
N233.59 Billion as against N167.27 Billion realized in the previous year (2019) representing 40%
growth. While return on equity for the same year stood at 17.2%, securing a place for the bank
among the top-4 quoted banks with the highest return to shareholders in the country.
The bank has been playing an important role in the modern economic development of the country
through servicing various sectors of the economy ranging from retail, corporate, oil and gas, real
estate, manufacturing, farming, aviation, remittance, trading, among others. Not to mention,
massively participating in humanitarian assistance as it distributed items including 600 bags of rice
and 350 pieces of clothing materials to different Internally displaced persons (IDP) camps in 2020.
The bank has also invested heavily in personnel and Information Technology to ensure it can
compete with the top niche of Nigeria’s financial service industry and provide its customers with the
best services wherever they may be through, robust E-Business platform that includes Internet
Banking, Mobile Banking, instant ATM Cards issuance, Point of Sale (POS) Services, Agency
Banking, NQR, and Jaiz Pay.

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INTRODUCING THE BANK PRODUCT: MURABAHA FINANCE LINE
(Local and Import)
Total Facility Amount : N2,000,000,000 (Two Billion Naira Only) equivalent of
about $4.76Million @N420/$1.0
Down Payment : 5% per transaction for importation and 10% for local purchase

Amount Recommended : N2,000,000,000 (Two Billion Naira Only) equivalent of

about $4.76Million @N420/$1.0.
Investment Type : MURABAHA FINANCE LINE (Local and Import)

Purpose : Purchase of refined products (raw materials for the production

of intravenous infusion and other pharmaceutical products)
1. Importation through establishment of various types of
Letters of Credit (confirmed and unconfirmed based on
deferred/sight payment)
2. Local purchase within Nigeria.
Tenor : 365days (12months)

Draw Down Cycle : Maximum 180 days per transaction (Depends on Importation
Cycle)
Mark- up : 19% p.a for local purchase and (Secured Overnight
Financing Rate) SOFR plus 6% (Post Negotiation)
for importation.

Payment : Unconfirmed Letters of Credit: 20% of sales price on

Presentation of shipping documents and the balance within
180
days from the release of shipping documents.

Confirmed Letters of Credit: 20% of sales price on

Presentation of shipping documents and the balance within
180
days from the release of shipping documents.

Local Purchase: Lump sum settlement of outstanding sales

price at maturity
Related Transaction Cost : LC Commission: 0.25%
Pre Negotiation on all LCs: 4%
Confirmation Charges: 0.25% per quarter

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 Processing Fee: 0.5% (Import finance
only)

Payment Source : Revenue from company’s sales proceeds, receivables and other
Sources available to the company and its Directors

Delivery time : Maximum of 12 Months from the date of opening the LC

Asset to be financed : Importation of refined products (Base oil, Petroleum

and diesel) and local purchase within Nigeria.
Security/Support : Unconfirmed Letters of Credit, Confirmed Letters of
Credit & Local Purchase
 Lien on shipping documents and local purchase order.
 Lien on 25% cash (5% down payment and 20% cash on
presentation of document) to be made available and
warehoused in Debt Services Reserve Account (DSRA)
 Personal Guarantee of Directors of the company.

Turnover Covenant : Minimum turnover of N4BN from the customer within a period
of one year.

TRANSACTION DYNAMICS :( MURABAHA IMPORT FINANCE CONFIRMED)

1. Approval and meeting conditions precedent to draw down
2. The customer executes all agreement submits a pro-forma invoice on the goods to be
purchased and executes a Promissory Note to purchase.
3. Form M is processed by Jaiz and LC is established in favour of the supplier from off shore
line and debit Murabaha LC suspense.
4. Customer provides 20% cash commitment.
5. Supplier prepares goods for shipment, presents LC compliant documents and receives
payment based on quantity supplied.
6. Upon receipt of shipping documents Murabaha is booked for FX allocation to the customer
7. Documents are received by Jaiz Bank.
8. Goods are sold to Biomedical Limited.
9. The documents are endorsed and released to Biomedical Limited for clearing and payment of
import duty.
10. Biomedical Limited pay the bank sales price of the goods and facility is closed.

TRANSACTION DYNAMICS :( MURABAHA IMPORT FINANCE UNCONFIRMED)

1. Approval and meeting conditions precedent to draw down.
2. The customer executes all agreement submits a pro-forma invoice on the goods to be
purchased and executes a Promissory Note to purchase.
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 3. Form M is processed by Jaiz and LC is established in favour of the supplier.
4. Jaiz Bank Bids for CBN FX allocation for both whole sale and retail.
5. Customer provides 20% cash commitment.
6. On allocation FOPS request for funds from RMD.
7. RMD provide the funds through Murabaha LC suspense account.
8. Supplier prepares goods for shipment, presents LC compliant documents and receives
payment based on quantity supplied.
9. Documents are received by Jaiz Bank.
10. Goods are sold to Biomedical Limited and Murabaha booked for the outstanding balance in
LC suspense upon allocation of FX.
11. For subsequent allocations Murabaha is booked to pay for the FX.

TRANSACTION DYNAMICS: (MURABAHA FINANCE LINE LOCAL PURCHASE)

1. Approval and meeting conditions precedent to draw down.
2. Customer executes an agency agreement appointing them as agents of the bank and
indemnity to protect us from the performance of the suppliers.
3. Customer sends a disbursement letter attaching, pro-forma invoice, promissory note and
other Murabaha documents.
4. Jaiz Bank Plc confirms pro-forma invoice from suppliers and makes payment directly to the
suppliers based on the indemnity from Biomedical Limited.
5. Customer takes delivery of products and notifies Jaiz Bank.
6. Customer executes Purchase and Sales and Schedule.
7. Irrevocable Domiciliation of proceeds from contract employer on the client account with Jaiz
Bank.
8. Proceeds of the contract are domiciled in the customer’s account
9. Upon maturity the facility is liquidated and closed.
10. Relationship Managers to monitor account performance till maturity.

CONDITIONS PRECEDENT TO DRAW DOWN

The investment will be available for utilization upon receipt of the following documents by Jaiz
Bank.
1. Customer establish relationship with the bank.
2. Facility request letter
3. Duly Accepted Offer Letter signed by authorized signatories of Biomedical Limited
4. Board resolution accepting the offer and appointing persons to accept the offer on behalf of
Biomedical Limited.
5. Duly executed letter of undertaking to purchase goods from the bank
6. Duly executed agency agreement
7. Duly executed Murabaha Finance Line Agreement
8. Submission of all LC documentation (Form M, LC Application, Marine Insurance &
Invoices)
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 9. Execution of domiciliation of Business proceeds
10. Search report from Corporate Affairs Commission on the Biomedical Limited
Asset
11. Duly executed Personal Guarantee of Directors with controlling shares
12. Opening of a non-chequing account with Jaiz Bank (To serve as a DSRA)

We would be delighted to provide more explanation should you require further insights, please put
up a call to 08035270415 (Raji Musa Olawole) and/or 08056738001 (Taofeeq K. Mustapha).

Whilst looking forward to a mutually beneficial and impactful relationship, please accept assurances
and our esteemed regards.
Thank you.

Yours faithfully,
For: Jaiz Bank Plc

RAJI MUSA OLAWOLE TAOFEEQ KAYODE MUSTAPHA

Relationship Officer Relationship Manager