1. FINANCING LOCAL CONTENT IN THE OIL & GAS SECTOR, PRODUCT SOLUTIONS FROM ADB FOR UPSTREAM COMPANIES PRESENTATION BY EDWARD IAN ARMAH-MENSAH GENERAL MANAGER, BUSINESS BANKING, AGRICULTURAL DEVELOPMENT BANK

3. Outline Background of ADB Distribution Channels Our Strengths
E-Banking Channels
Product Solutions
Requirement / Features of Product Solutions
Why ADB
Conclusion

4. Background of ADB
ADB was established in 1965 by an Act of Parliament under the Agricultural Credit and Co-operative Bank Act, 1965 (Act 286) to promote and modernize the agricultural sector.
The Agricultural Development Bank Act, 1970(Act 352) was passed to broaden the Bank’s functions and facilitate the granting of a full banking licence under the Banking Act, 1970,(Act 339)
ADB gained a Universal banking licence under Banking Act (Act 673) which removed restrictions on banking activity.
Introduced a New Business model in 2010 to transform the Bank into a modern Bank with focus on Agric and more.

5. Extensive Distribution Channels – 78 Branches & 92 ATMs
Region
# of Branches
# of ATMs
Ashanti 8 9
Brong Ahafo
Central 6
Eastern 5 7
Greater Accra 22 34
Northern 10
Upper East 3
Upper West 2
Volta
Western 4
TOTAL 78 92

6. OUR STRENGTHS
A robust indigenous Universal Bank strategically positioned to support the Oil and Gas Industry
Strong treasury services
Processing of trade services at quick turn-around-time
We have very strong relationships with our correspondent banks and they include;
Citi Bank N.A
Commerzbank AG
Bankers Trust
Ghana International Bank
BHF Bank
Extensive branch & ATM network
Strong remittance services
Cash collection services
Bulk payment solutions

7. e-channels to support Oil & Gas
FLEXCUBE
CR2
E- STATEMENTS
SWIFT STATEMENTS
NCR
SUPPORT
TREASURY & TRADE
ALERT ENGINE

8. PRODUCT SOLUTIONS FROM ADB
For the exploration and production sectors;
We are ready and have the capacity for Loan Syndication with other banks
We offer treasury services (call accounts, sourcing and trading of forex) at very competitive rates
For the service industry, we have the capacity to;
Discount invoices
Finance local purchase orders
Raise Letters of Credit
Issue Bank Guarantees
Finance Working Capital
Asset Finance
Treasury Services (call accounts, sourcing and trading of forex)
Do outward transfers with same day value at negotiated charges
We offer very competitive pricing for all our products and services. Our rates and charges are negotiated to the satisfaction of our customers

9. GENERIC REQUIREMENTS/FEATURES OF OUR PRODUCT SOLUTIONS
There must be an account relationship with the Bank
The account can be a day old once the customer is ready to provide bank statements of account performance from other banks
Security requirement is dependent on the credibility and risk profile of the paymaster, the total exposure and customer’s ability to perform
Facility charges are very competitive and negotiable
Repayment periods are determined by contract durations but are generally short term.   

10. SPECIFIC REQUIREMENTS/FEATURES OF OUR PRODUCT SOLUTIONS
LPO Financing
Purchase order from the paymaster
Undertaking by paymaster to channel payments through ADB
Invoice Discounting
Invoice raised
Discounts of between 60 and 70% is offered with customer providing equity to make up the difference
Asset Finance
Equity of 20-30% is required from customer with bank financing remaining 70-80% for a lease period of 3-5 years
Where slightly used assets are to be acquired, the age of the asset should be such that it does not exceed the 10years at the time of expiration of lease   

11. WHY ADB?
We have a team of experienced bankers with specialist knowledge in the Energy, Oil & Gas sector.
We also have the right product capabilities, IT infrastructure and electronic banking platforms to support Energy, Oil & Gas businesses.
We deliver the business confidence our customers need by providing access to one of the most comprehensive suites of financial products and services available within the financial services landscape in Ghana.
We build together, believe in local content and in our customers.
Our customers are the very reason for our existence as a bank and so we constantly strive to anticipate the rapidly changing needs of our customers and develop new strategies to meet their needs.
We price for value as a bank. Our focus is to offer our clients competitively priced value products and services.
We offer a bundle of collections solutions with real time monitoring of transactions, facilitating reconciliation and across multi‐channels that are designed to suit the needs of our customers

12. Conclusion
ADB prides itself with the provision of comprehensive financial solutions tailored to meet specific customer needs
We are well positioned to provide the utmost in customer service and to deepen a mutually beneficial and professional relationship with our customers
We have mounted a desk here for further engagements and initiation of business relationship

13. We are very grateful for this opportunity.