Wegagen Bank, Credit Appraisal Team Date: August 2023

1. `Customer Information:

Borrower/Applicant:Azmeraw GenetuKebede Date Business Established:

Branch:- KalityMaseltegna Date Credit Relationship Started: 2017

Business Address: City: Addis Ababa Sub City:
Lemikura: wereda10 Tel. No: 0944210555
Customer Classification:
Corporate  Previous Credit Risk Grade: -
Commercial
Ownership: Sole proprietorship
Business/Economic Sector: Import and Export
Total Applicant’s Credit Exposure: 35mill
Sister Company/s Credit Exposure: -
Credit Exposure Grand Total: Birr -
Current Credit Risk Grade: C
Risk grade of sister company(s):______
Reason for change of Grade (in short): N/A
Collateral to loan ratio: 0.65:1
Credit Facility Utilization: unsatisfactory

Business type/Line: Export of agricultural Policy Exception:

commodities and import of various products Yes x No

Trade License No.: BL/AA/14/673/2980240/2012 If Yes state Briefly:

Renewed up to: 2014 _______________________________________
_

TIN: 0053691176 PERFORMERS :

Financial Statement: CRM : Mulushewa Tola
Audited up to: 07/07/2022 CA : Nigussie Tadesse
Provisional: Credit Approving Committee
Interim: 30/09/2022 CAC –1 CAC –2 CAC
x –3
Auditor: Anmaw Lulu Authorized Auditor CAC –4 x Laon Work-out
Firm Opinion: Unqualified Qualified x
Disclaimer

As At 07/07/2023  Date Application Received:

 Case assigne to CRM:
Paid up Capital: 500,000.00  CRM’s Acknowledgment Date:
Capital Employed: 48,000,000  Case assigne to CA: 18/08/2023
Tangible Net Worth 48,000,000.00  CA Last Doc. Received Date:
Sales: 181,112,902.00  Analysis start date:
Operating Profit ratio: 4.2%
 Analysis Completion date:
Net profit ratio: 4.2%
Current Ratio: 1.01:1
Decision Date: ______________________
Bank Debt/TNW ratio: 1.59:1
Total liability/TNW ratio: 1.60:1
Net Profit/Loss: 4949151.00

Azmeraw Genetu Annex to LAF No. WB/CRM/MUL/021/2023 Kality Maseltegna Branch 1

Wegagen Bank, Credit Appraisal Team Date: August 2023

2. Current Request:
The applicant has requested by his letter dated July 22, 2023 G.C
 Increment of revolving pre-shipment facility limit of birr 35,000,000.00 to birr
65,000,000.00 for a period of one year and
 Export Overdraft facility limit of birr 20,000,000.00 yearly renewable
Both against commercial building registered in the name of Kahsay Tesfaye under LHC
No.0259312 having estimation value of birr 54,142,896.42
3. Purpose:
 To ease the working capital required for his export and import business
4. Collateral:
Building
The applicant has offered under construction Building collateral in the name of Kahsay Tesfaye
situated in AA, Kality Sub-city having an area of 250 m2 and estimated value of Birr
54,145,896.42 for the previous request is offered. The details of the collaterals as depicted
hereunder.
LHC Construction Location Estimated Estimated
Collateral Type Address
No. value Value value on
G+4 under
construction AA ;
(85.5%) completed A/Kality Laike
commercial Sub city;
building in the Woreda 0259312 43,244,461.42 10,901,435.00 54,145,896.42 Solomon
name of 01 80% 20% 100% 28/7/2023
KahsayTesfaye Around
with a total area of UNISA
250.00S.qm
Collateral analysis
 The building is under construction … based on the assessment report; the building is
currently found @ 85.5% of completion level.
 The security/collateral coverage (the security - to the requested loan ratio);
Collateral value …………………………………………………54, 145,896.42
Existing outstanding loan………………………………..………35,000,000.00
Incremental pre-shipment………………………………………..30,000,000.00
Export OD………………………………………………………..20,000,000.00
Collateral deficit ……………………………………………..-30,854,103.58
Collateral to loan ratio ………………………………………..0.637:1=63.7%

Azmeraw Genetu Annex to LAF No. WB/CRM/MUL/021/2023 Kality Maseltegna Branch 2

Wegagen Bank, Credit Appraisal Team Date: August 2023

 The offered collateral is not enough to cover the requested amount if granted at full.
5. Borrower’s Background:
5.1. Establishment & Business Objective:
The applicant, Azmeraw Genetu is an Ethiopian businessman with Norwegian citizen. The
business was established in May 2017 within initial paid-up capital of Birr 500,000. The applicant
primary engaged in export of various type of agricultural products to foreign buyers as well as
import of a wide range of products such as cleaning products, cosmetics, rubber plastic,
automobile, basic industrial chemicals, industrial machineries, construction machineries as well as
agricultural machineries etc… .
The applicant also involved in investment activities in area such as baby food processing factory,
and poultry business with a combined initial capital of Birr 108 Million.
As per the applicant profile document, he has already established various sister companies to run
his business operation on the Global scale such as
 Azmeraw Genetu import and Export (Norway)-Sister Company
 Borze international, Dubai UAE (sister company)-a company engaged in agro
processing industry
5.2. Management/Board Profile;
The business is primarily operates by the applicant. Furthermore he hires 10 employees (7
permanent 3 temporary staffs). The applicant has a well established organizational structure that
encompasses units that handle operation, sales, marketing and Administration & finance activity
of the business. The overall activity is overseen by the managing Director, Ato Azmeraw Genetu.
The details of the management staff is as depicted here under
Educational Work Experience
Name of Employee position
Qualification (in Years)
1 AzmerawGenetu Managing Director Cand. MD 5
2 GenetuKebede Ass.M. Director BA Management 40
MA in accounting and
3 ErmiyasMebrate Export Manager 14
finance
4 MulugetaAndualem Marketing Manager BA- Economics 11
5 MeseluBeju Import Manager BA- Accounting 12
6 DehnentAbebe Sales BA- Economics 4

Azmeraw Genetu Annex to LAF No. WB/CRM/MUL/021/2023 Kality Maseltegna Branch 3

 Wegagen Bank, Credit Appraisal Team Date: August 2023

5.3 Current business Activity

Currently, the applicant is mainly engaged in import of various items such as
cleaning products, cosmetics, rubber plastic, automobile, basic industrial chemicals,
industrial machineries, construction machineries as well as agricultural
machineries…export of agricultural products. The applicant head office is found in
Lemi-kura sub-city, wereda 10 around Bole Bulbula. He also has various
warehouses in Adama and Debre-Birhan Town. Source: CRM
Based on the given documents the applicant has stock of different kinds of export
commodities that worth around Birr 27.3Million readily available for export as of
19/08/2023 with details as depicted here under:-
Quality Unit price Warehous
Item Quantity Total Price
standard (Birr) e
White kidney Bean Grade 2 1100.00 3,800.00 4,180,000.00 B/Dar
Soy bean Grade 1 6,800.00 3,400.00 23,120,000.00 Metema
Total 7,900.00 27,300,000.00
5.4 Key Customers and Suppliers of the Business:
As it was stated earlier, he has established sister companies in abroad (in Dubai and
Norway) that helps to facilitate the import of various items. In addition to this, he has also
made a business relation with an Indian company called RNZ international Medicament
Biotech (New Delhi), that help to import some medical(cosmetics) items from India. In
due course a wider connection is already established with food, medicine, health care
administration authority of the FDRE.

Azmeraw Genetu Annex to LAF No. WB/CRM/MUL/021/2023 Kality Maseltegna Branch 4

Wegagen Bank, Credit Appraisal Team Date: August 2023

6. Credit Exposure:
6.1. Credit exposure with our Bank
6.1.1 Present or past credit history:
The applicant has the following credit relationship with our bank as depicted below:-
Approved O/S Balance
Facility Type Date Granted Expiry Date Status
amount/Limit As at 17/08/23
Pre-shipment
35,000,000.00 18/03/2023 18/03/2024 32,604,388.96 Normal
facility limit
Total 35000000 32,604,388.96

6.2 With other Banks (Past and Present)

As per the credit information received from National Bank of Ethiopia data base under enquiry
ID. No. 2003209 dated 17/08/2023 the applicant has the following outstanding and settled loan
facility with other banks.
Current outstanding
Name of Approved Date O/S Balance
Facility Type Expiry Date Status
Bank amount/Limit Granted 17/08/23
Export Term
Abyssinia 10,000,000.00 13-Jun-22 13-Jun-27 9,455,647.12 Pass
Loan
Export Term
Abyssinia 48,000,000.00 25/11/2022 25/11/2027 59,786,588.91 SP. Mention
Loan
Export-
Abay 25,000,000.00 13-Nov-20 12-May-23 25,000,000.00 SP. Mention
Revolving
Abyssinia OD 10,000,000.00 18-May-23 18-May-24 9,043,573.14 Pass

Total 93000000.00 103,285,809.17

The applicant has granted a total export loan of birr 141 million with outstanding of birr 103.3
million.
Credit relation of Guarantor
As per credit information report imparted from NBE under inquiry ID 2007509 and 2007510
dated 23/08/2023, the guarantor has no any credit relation with other Banks.

Azmeraw Genetu Annex to LAF No. WB/CRM/MUL/021/2023 Kality Maseltegna Branch 5

Wegagen Bank, Credit Appraisal Team Date: August 2023

7.2. Account Utilization in Our banks

Checking account Credit turnover at our bank Kality Maseltegna branch
Activity Period Total Credit Total debit
turnover turnover
Oct 07,22 to
Aug 20,223 67,811,116.05 69,822,905.78
Highest credit 18,814,987.03
15,814,987.08
15,814,887.03
Lowest credit 5,276.62
54,526.62
55,276.62
The applicant business credit turnover in the past one year is birr 67.8 million
with highest credit of birr 18.8 million birr.
OD Account Utilization in other banks
Abyssinia
Abyssinia has availed OD facility limit of 10 Million. The OD account swing and turnover is
depicted below.

Activity Period Cover (From Total Debit Turnover Total Credit Turnover
01/11/2021-to -30/11/2022)
10,454,028.70 104.54%
Highest Cr
/Lowest Dr./ 10,037,538.70 100.38%
6,772,506.89 67.73% 28,589,912.01
21,127,689.74
(10,120,063.15) -101.20% (2.86%)
(2.11%)
Lowest Cr
/Highest Cr./ (10,042,917.10) -100.43%
(9,998,569.53) -99.99%

Abay
The company has maintained Current account in Abay S.c. The account movement within a
period of July, 2021 to July, 2022 is as depicted here under

Bank Name Total Dr- Total Cr-

Abay 43,488,510.81 41,292,878.44

7.3 Export performance

Azmeraw Genetu Annex to LAF No. WB/CRM/MUL/021/2023 Kality Maseltegna Branch 6
Wegagen Bank, Credit Appraisal Team Date: August 2023

a) By our Bank
The applicant has managed to export agricultural commodities that worth around
641,116.93 USD which is equivalent birr 33,748,635.33 through our Bank. The
details are as described here under:-
Date Reference Number FCY LCY Export Item
29-Oct-22 056FTIC223020012 148,130.00 Euro 7,864,651.28 Kidney beans
24-Mar-22 056FTIC220830029 48,691.00 USD 2,480,309.80 Black Cumin
Total 196,821.00 10,344,961.08
06-May-23 056FTIC231262013 15,947.00 EUR 953,400.00 Kidney beans

10-May-23 WJL00338298 59,760.00 USD 3,239,505.94 Chat

10-May-23 WJL00338295 59,760.00 USD 3,239,505.94 Chat

16-May-23 WJL00338622 69,721.00 USD 3,781,178.99 Chat
17-May-23 WJL00338656 64,741.00 USD 3,511,590.68 Chat
26-May-23 WJL00338655 49,800.00 USD 2,703,318.30 Chat
15-Jun-23 WJL00338659 49,800.00 USD 2,712,008.40 Chat
08-jun-23 056FTIC231590009 60,000.00 USD 3,263,166.00 Black Cumin
Total 429,529.00 23,403,674.25
Grand total 641,116.93 USD 33,748,635.33
The export performance of the applicant in 2022 was USD 196,821.00 which is equivalent to birr
10,344,961.08 while in 2022 USD 23,403,674.25 that equivalent to birr 23,403,674.25.

From that we observed the sales growth of export business of the applicant is 126% of last year
performance.

In addition the applicant export performance goes to 67% of the facility granted in the past five
(5) months only to the applicant even though a minimum of 50% in annum is expected.

Therefore the facility utilization of the applicant in FCY earning is said to be very good.

b) By other banks
The applicant was availed with export credit facilities through other Bank. Based on the given
export advice, the applicant has managed to export agricultural product with in the financial
period of 2020, 2021 & 2022 was able to generate USD 2.56 Million. The performance has shown
a progress across the period with details as depicted here under
Date Reference Number FCY LCY Name of Bank
13-Oct-20 WJL00283450 200,000.00 US 7,379,200.00 Abay

Azmeraw Genetu Annex to LAF No. WB/CRM/MUL/021/2023 Kality Maseltegna Branch 7

Wegagen Bank, Credit Appraisal Team Date: August 2023

D
US
14-Oct-20 WJL00283527 100,000.00 3,693,990.00 Abay
D
US
17-Dec-20 TRS/INC/973/2020 62,486.00 2,416,596.06 Abay
D
Sub Total-2019 FY 362,486.00 13,489,786.06
US
20-Jan-21 OTTJM02-21012054 228,500.00 8,991,840.60 Abay
D
US
9-Feb-21 TRS/INC/175/2021 132,175.00 5,231,658.32 Abay
D
US
18-Feb-21 OTTJM02-21021768 82,400.00 3,276,973.84 Abay
D
US
18-Mar-21 2107716335522000 221,323.00 9,019,509.82 Abay
D
US
22-Mar-21 101ESNL210710501 39,965.00 1,633,605.34 Abay
D
11-May- US
WJL00297303 99,651.22 4,217,120.05 Abyssinia
21 D
14-May- US
WJL00297353 99,651.22 4,229,735.89 Abyssinia
21 D
20-May- US
WJL00297626 99,651.22 4,255,067.23 Abyssinia
21 D
US
5-Oct-21 8302FT/21278/3JZ41 47,950.00 2,218,517.04 Abyssinia
D
Sub Total- 2021 FY 1,051,266.66 43,074,028.13
US
17-Jan-22 WJL00296074 100,000.00 4,934,630.90 Abyssinia
D
US
29-Jan-22 WJL00297047 100,000.00 3,941,230.00 Abay
D
US
28-Feb-22 WJL00297355 100,000.00 5,073,930.00 Abay
D
US
25-Mar-22 WJL00297051 100,000.00 4,099,940.00 Abay
D
15-Apr-22 WJL00297097 100,000.00 US 4,143,650.00 Abay
Azmeraw Genetu Annex to LAF No. WB/CRM/MUL/021/2023 Kality Maseltegna Branch 8
Wegagen Bank, Credit Appraisal Team Date: August 2023

D
US
15-Apr-22 WJL00297105 200,000.00 8,311,100.00 Abay
D
19-May- US
WJL00295049 149,000.00 7,667,107.90 Abay
22 D
19-May- US
WJL00295211 100,000.00 5,332,440.00 Abyssinia
22 D
US
15-Jun-22 WJL00298947 50,000.00 2,601,720.00 Abay
D
US
9-Oct-22 WJL00298412 149,000.00 7,044,556.00 Abay
D
Sub Total 1,148,000.00 53,150,304.80
Grand Total 2,561,752.66 109,714,118.99
Most of the export items are Chatt.

7. Condition of Fixed Asset:

As per the Audited financial statement presented as at July 7/2023 G.C the applicant has register a
fixed assets worth of birr 47.37 million, that includes different buildings ,furniture fixtures and
equipment that the business uses at office.

Financial Statement Analysis:

The applicant has submitted audited financial statements for the preceding three years ended July
07, 2020, 2021 and 2022 G.C. audited by Animaw Lule Authorized Auditor whose list is found in
www.aabe.gov.et and provisional financial statement for the period ended July 07,
2023.Financial figures are filled out in the attached spreadsheet and analysis of financial
indicators is as follows:
9.1 Activity/ Sales Analysis
PERIOD ENDED 7/7/2020 7/7/2021 7/7/2022 7/7/2023
155,298,49 181,112,90
Net Sales ‘000 26,743,401 74,228,610 6 2
Net Sales Gr. Rate (%) 177.6% 109.2% 16.62
The sales volume of the business which stood at Birr 155.3 million as at 07/07/22 had increased
from the previous fiscal year by 109.2% and by16.62% for 2023. The Net sales Growth rate has
increased by 101.13%.
9.2 Profitability Ratio
PERIOD ENDED 7/7/2020 7/7/2021 7/7/2022 7/7/2023

Azmeraw Genetu Annex to LAF No. WB/CRM/MUL/021/2023 Kality Maseltegna Branch 9

Wegagen Bank, Credit Appraisal Team Date: August 2023

Net profit ‘000 2,037,142.00 3,700,402.14 11,607,138.17 4,949,151

Gross Profit Margin (%): 13.00% 7.77% 12.23% 4.48%
Op. Profit Margin (%): 11.96% 7.09% 11.78% 4.20%
Net Profit Margin (%): 7.62% 4.99% 7.47% 2.73%
The applicant business is profitable throughout all the business years; however the profitability
margin of the business is insignificant.
9.3 Liquidity Ratio
PERIOD ENDED 7/7/2020 7/7/2021 7/7/2022 7/7/2023
Current Ratio: 1.97 1.05 1.14 1.01
Quick Asset Ratio: 1.97 0.58 0.97 0.91
Net Current Assets 2,060,496 3,368,388 14,204,605 631,000
Liquidity indicators shows current liabilities of the business can marginally be covered by current
assets. As it depicted from the above table the applicant has the ability to cover his short term
obligation. The net current asset is growing from 2020 to 2022, indicating the ability the business
to cover short term maturing obligation is growing across the period. However for the provisional
financial statement of 2023 it decreases from 14,204,605 to 631,000.00 that is still positive.
9.4 Leverage ratio
PERIOD ENDED 7/7/2020 7/7/2021 7/7/2022 7/7/2023
Tangible Net Worth ‘000 2,773,504 4,074,004 14,768,507 48,000.00
Total Liabilities/TNW 0.76 17.12 6.72 1.60
Bank Debt/TNW 0.34 16.69 6.30 1.59
Profit Cover For Interest 0.00 23.95 39.74 0.00
Total Liabilities/Total Asset 0.43 0.94 0.87 0.64

The tangible net worth of the applicants had been increased by increasing rate since 2020. An
increase in TNW is primarily brought as a result of an increase in accumulated net earnings
(retained earnings) rolled over from the previous financial year. Nonetheless, the company is
highly indebted as measured by the debt to equity and debt to asset ratios for the year ended July
07, 2022 which is later shows improvement in 2023.
Risk Assessment
a) Business risk
The applicant engaged in export of fruits and vegetable, oil& pulses and cereals, pepper and pulses.
The risk related to the business company will be mitigated by diversified item of exportable
products. In addition the import export sector of the business is encouraged by the government
policy that could minimize related risks.
b) Ownership risk

Azmeraw Genetu Annex to LAF No. WB/CRM/MUL/021/2023 Kality Maseltegna Branch 10

Wegagen Bank, Credit Appraisal Team Date: August 2023

The business is owned by the General Manager of the business and the owner has ample
business experience for long time.
As the business ownership is a sole proprietorship form the ownership risk assumed to low.
c) Management risk
The business is managed by experienced manager and owner of the company who equipped
himself in business experience since 2012 and ownership risk seems minimal
d) Collateral risk
The applicant pledged 3rd party collateral building found in Addis Ababa that was already held by
our bank the same person (the applicant himself) with sufficient safety margin. However if the
request of the applicant entertained at full there may be collateral risk as it only covers 65.5% of
the requested facility.
None-the less the probability of his request entertainment at full amount is low due to qualitative
and quantitative analysis outputs.
8. Credit Risk Rating:
Based on the parameters employed for risk assessment the applicant is rated as grade “C” and the
associated risk is moderate risk.
9. Request Assessment:
The applicant has requested by his letter dated July 22, 2023 G.C
 Increment of revolving pre-shipment facility limit of birr 35,000,000.00 to birr
65,000,000.00 for a period of one year and
 Overdraft facility limit of birr 20,000,000.00 yearly renewable

Working Capital Determination

Scenario A
The first scenario has been carried considering the financial growth observed over the recent few years
using major financial indicators such as sales, inventory turnover, and CGS and admin. Expense etc…
Accordingly the following major inputs has been taken from the financial record
 Since the average sales are much lowered due to the financial impairment occurred at the time of
starting business. On the other hand the sales trend is increasing across the period reaching to
181.112 Million for the period ended FY 2023. Thus we have taken these sales figures as basis for
projecting the sales for the next financial year.
 The following assumption has been taken from the average of figures of three years financial records
o CGS to net sales
o Admin. Expense to net sales
o Working capital cycle

Description Amount''000''

Azmeraw Genetu Annex to LAF No. WB/CRM/MUL/021/2023 Kality Maseltegna Branch 11

Wegagen Bank, Credit Appraisal Team Date: August 2023

A Actual base year the sales volume 181,112,902.00

B percentage Projected sales growth 20.00%
C Projected annual sales for the coming year (=A+B) 217,335,482.40
D Average %age of cost of goods sold to net sales 90%
E Projected cost of sales for the coming year 193,428,579.3
F Average %age operating & administrative expenses to net sales 0.5%
G Operating & administrative expenses 10,866,774.12
H Total annual required working capital (=E+G) 204,295,353.46
I No. of working capital cycles 4
J Required working capital per cycle 51,073,838.36
K Add: contingent cost 0.0
L Less: Net current asset 630,529.94
M Total bank financing required (=(J+K)-L) 50,443,308.42
N Existing facilities limit 35,0000.000
O Additional bank finance required (=(M-N)) 15,443,308.42
 Thus the additional working capital required said to be birr 15,443,308.42 beside the
existing pre-shipment facility limit amount of birr 35,000,000.00.

Scenario B
The required working capital under this scenario is computed based on the given business plan.
Based on the submitted business plan the applicant intended to export coffee, chat chickpea
Kabul, Black cumin, Pumpkin seed, white pea beans, Soya beans, Light speckled Kidney bean
with aggregate expected revenue of Birr 418.92. The anticipated sales is much higher than what
has been carried in actual terms within the period ended 2022 FY which is 155.29 Million Birr
depicting a growth of 270% of the actual sales performance. Thus, it has been found crucial to
lower the percentage performance near to the actual sales figure of 2022 FY. Accordingly, 50% of
the projected sales were taken. In addition to this
o Processing the export commodities takes 2% of the purchasing cost
o The overhead cost of 4% of the total cost(Purchasing plus processing cost)
o The average Working capital is taken 4 (more than the BP inventory turnover of
2.5)
o Net current asset was taken the net current asset for the business as at July 7, 2023
which is 630,529.94 Million Birr Accordingly, the working capital required under
these scenarios as depicted here under.

Azmeraw Genetu Annex to LAF No. WB/CRM/MUL/021/2023 Kality Maseltegna Branch 12

Wegagen Bank, Credit Appraisal Team Date: August 2023

Planned Purchase 209,459,750.00

Processing Cost 4,189,195.00
Total cost 213,648,945.00
Overhead Cost 8,545,957.80
Gross Working Capital 222,194,902.80
Average inventory turnover 4.
Working capital requirement 55,548,725.70
Less: Net current asset 630,529.94
Required working capital 54,918,195.76
Thus according to the business plan of the applicant the required working capital to run the day
to day operation of the export-import business easily is estimated to be birr 54.92 million.
Scenario C
As Per the presented sales contract by the applicant the projected required working capital for pre-
shipment with the following assumptions from related business sector.
 Loading unloading plan birr 42.00 per quintal
 Transport charge birr 260.00
 Port clearing charge birr 90.00 per quintal
 Inspection fee 32.00 birr per quintal
 Miscellaneous expense birr 160 per quintal
purchase 47,630,000.00
Loading unloading 505,050.00
Transport charge 3,126,500.00
Port clearing charge 1,082,250.00
Inspection fee 384,800.00
Miscellaneous expense 1,924,000.00
54,652,600.00
 Generally the required working capital for the business is above 50 million in the above
three scenarios and the applicant pledged under construction building in Addis Ababa
having an Estimation value of 54,145,896.42 that have completion stage of 85.5% as per
the engineer estimation to back the loan facility.
Strength and Opportunity:
Strength
 Accumulated long time business experience in the export sector
 Has the intention of diversifying the business beyond the export and import business such
as food processing and agriculture and agro processing business
 Has shown a growing financial performance as indicated by an increase in sales, net profit
as well as increase in net worth in the past audited financial business year.
 Has well organized and capable Management team to run both the export and import
business
 Has presented strong collateral to back the recommended loan.
 Has good export performance in the past five months (429,529.00 USD)
 Has good OD performance at other bank (BOA).
Weakness
 The business is becoming highly geared.
 The profit margin rate of the business is decreased for the Current year

Azmeraw Genetu Annex to LAF No. WB/CRM/MUL/021/2023 Kality Maseltegna Branch 13

Wegagen Bank, Credit Appraisal Team Date: August 2023

10. Recommendation;
Based on the foregoing analysis and mentioned facts, I recommend
I. Granting incremental revolving pre-shipment credit facility limit of Birr 35,000,000.00
(thirty five million birr ) to 45,000,000.00 ( forty five million only) at the prevailing
interest rate for a period of one year against sales contact with 70% discount and under
construction commercial building (85.5% completed) registered in the name of Ato
Kahsay Tesfaye having estimation value of birr 54,145,896.42. and
II. An Import Overdraft facility limit birr 5,000,000.00 (Five million birr only) renewable
every year at prevailing interest rate against under construction commercial building
(85.5% completed) registered in the name of Ato Kahsay Tesfaye having estimation value
of birr 54,145,896.42.

 Prepared by Reviewed by

Nigussie Tadesse Michael H/Giorgis

Sr. Credit Analyst Manager, Credit Analysis

Azmeraw Genetu Annex to LAF No. WB/CRM/MUL/021/2023 Kality Maseltegna Branch 14