ADB Role - revised as at 09 28 05

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ADB Role - revised as at 09 28 05 Powered By Docstoc
					             Agricultural Development Bank of Trinidad and Tobago

                   “We Finance Your Growing Needs”




THE ROLE OF THE ADB


The Agricultural Development Bank was established in 1968 for the purpose of providing
credit for the sustained development of the agribusiness sector.

Our Vision:

“ We are the first choice for complete financial and support
  solutions to transform Agriculture into an attractive,
sustainable and competitive sector which promotes socio-
                 economic development”.
Our Mission:
 “To facilitate sustainable socio-economic development of
    the agribusiness and rival sectors through strategic
partnerships with our stakeholders delivering cutting edge
financial products and services to satisfy our internal and
 external customers utilizing a team and customer focused
                        approach.”




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                                     Our Staff




                                Our Core Values Are:
                                   Trust
                               Accountability
                             Customer Focused
                                 Excellence
                                  Respect
                                Commitment
                               Transparency

Since 1968, the Bank has provided almost $3 billion in credit to the agricultural sector
which encompasses the entire food chain from primary production to agro processing,
marketing and other support services.

       Our initial emphasis was moving the small farmer from subsistence level
       operations to more profitable businesses by focusing on the following:
          o Livestock production
          o Agro-processing
          o Farm mechanization
          o Marine fishing
       We then concentrated on backward and forward linkages to support primary
       producers in the following
          o Integration of the broiler industry
          o Introduction of commercial horticulture
          o Support of the construction of multipurpose fishing vessels
       We also focused on modernizing the sector encouraging the appropriate use of
       new technology and:
          o The transformation of the sector into one that is dynamic, profitable and
              sustainable




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          o Developing and nurturing strategic relationships and providing a “One
              Stop Shop” for our customers
          o Developing and offering cutting-edge products and services that meet our
              customer needs
Our Current Focus Is:
      Developing sub sectors considered to be of national and economic significance
                      Summary of the role of the ADB:
 Development Bank
    As a Development Bank We:

       Contribute to Food Security:
        Including the country's:
        - attainment of 10% supply of milk
        - self-sufficiency in broilers
       Improve the Standard of Living
       Contribution to Gross Domestic Product (GDP):
        - primary production - 3%
        - agro-processing         - 4%
       Create Employment
        - Granted over 40,000 loans since inception facilitating direct employment of
            at least two (2) persons per loan
       Focus On the Growth Of the Sector And:
       - Increasing production of all commodities with special focus on those under
           the Agricultural Sector Reform Programme ( ASRP)
       - Increasing employment
       - Increasing the percentage of new and young entrants in agriculture
       - Increasing the level of exports
       - Development of products based on customer needs and appropriate alliances
       - Improving customer service through the development of a “One Stop Shop”

 Provide Funding to the Sector
We Provide Funding for:
All aspects of the Agri-business Sector which encompasses:
     Primary production
     Agro-processing
     Marketing (local and export)
     Input Supplies
     Other Agribusiness projects

 Supervised Credit
We provide Supervised Credit:
   Our focus is on the total project
   We ensure that loan funds are used for the development of the Sector




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                              WHY SELECT THE ADB?

I. Our Specialist knowledge of the Sector:
      We have the Expertise
      We provide Personalized Service and an officer is assigned to each project
      We conduct Periodic site visits
      We are willing to accept the risks associated with the sector

II. Our Loans are structured to meet the needs of the project's cycle including:
       Moratorium - a grace period during which only interest is charged.
          The Bank is prepared to grant clients a grace period (moratorium) while the
          project is under implementation. In effect, the project’s gestation period is
          considered in determining individual repayment terms. Clients can take
          advantage of this grace period on the repayment of the principal sum
          borrowed depending on the needs of the project.
          Flexible Repayment Terms - instalments could be monthly, quarterly of half
           yearly.
           ADB’s flexible repayment terms allow the identification of a manageable
           level and interval of instalment payment. ADB offers monthly, quarterly,
           semi-annual and annual instalment plans. The repayment period depends on
           the size of loan and the type of project being implemented.
          No lending limits
           The amount you borrow from the ADB depends on your needs. How much is
           offered is limited by the viability of the business, the borrower’s capacity to
           repay and the security provided




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            Competitive interest rates calculated on the declining balance (amortized).
                   Our prime rate is now reduced to Six Percent (6%)

                                       $                $                $
              Loan Size($)
                                   50,000.00       100,000.00       250,000.00
           Loan Period           (18 months)      (18 months)     (18 months)
           (Months)
           ADB-
           Amortized Rate        8%              8%               8%
           Effective Rate        4.3%            4.3%             4.3%
           Bank-Add-on Rate      8%              8%               8%
           Effective Rate        14.65%          14.65%           14.65%
           Monthly
           instalment size ($)
            ADB                 $2,957          $5,914           $14,795
            Add on              $3,111          $6,222           $15,556
           Total Interest Paid
                ADB             $3,226          $6,453           $16,131
                Add on          $6,000          $12,000          $30,000
           Total Payments ($)
                ADB             $53,226         $106,453         $266,131
                Add on          $56,000         $112,000         $280,000


III. We cater for the nature of the sector and its inherent risks both for:
               the PRESENT - The loan size is based on the total project cost and
                                  repayment is structured to fit the product cycle
               the FUTURE     - We provide solutions to problems such natural disasters
                                  including:
                                      -refinancing - additional financing can be provided
                                      -rescheduling - loan repayment is restructured
                                      -life insurance for all loans
IV. All our loans are insured
V. We facilitate access to support organizations such as the MALMR, CARIRI,
     BDC
VI. Strategic geographical location of our Branches throughout the Country

        ADB LOANS CAN BE USED FOR THE FOLLOWING PURPOSES:
   Project Establishment
   Project Rehabilitation
   Project Expansion
   Purchase of equipment, machinery and vehicles
   Farm House Construction
   Working Capital
   Operating Costs
   Infrastructural Development


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    THE FOLLOWING ACTIVITIES CAN BE FUNDED BY THE ADB LOANS:
 FOOD CROPS         -    sugar cane, cocoa/coffee, roots/starches, pulses/
                          nuts, fruits, vegetables, cereals, herbs and spices




 AGRO-PROCESSING            -      sawmilling, woodworking, fruit processing,
                                    fish/shrimp processing, beverages (non alcoholic),
                                    cocoa processing, other agro-industry
 AGRI-SERVICES              -      Input Supplies, Landscaping, Mechanical Services,
                                    Plant Propagation, Other Services
 FISH                       -      aquaculture, marine fish, ornamental fish
 LIVESTOCK                  -      beef, dairy, pigs, poultry, small ruminants, other
                                    Livestock
   APICULTURE
   AGRO-TOURISM
   FORESTRY
   FISH-TOURISM
   AGRICULTURAL CO-OPERATIVE SOCIETIES (ACS)


              PRODUCTS AND SERVICES OFFERED BY THE ADB:

The Products and Services offered by the ADB are comprised mainly of loans of the
following types: -

   Regular loans – Loans developed to meet the financial needs of all types of farmers
    and agri-business entrepreneurs and used for a wide range of activities and purposes.
    These loans are tailored to meet the needs of the borrower.
   Same day/Package loan – Loans with no up-front fees and minimal security granted
    in one (1) day to specific farmers (Dairy, Sugar-cane) requiring cash urgently
   Vehicle Package loan – A regular loan specifically to purchase a new or used
    vehicle, where the vehicle is held as the sole security item.
   Revolving credit – Short term loans similar to an Overdraft Facility but at more
    attractive rates to meet working capital needs of the business


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   Instant Loan – A regular loan requiring a pledge of 1:1 cash/quasi-cash security,
    where the decision is given to the client immediately.
   Veggiequick Loan – Loan targeting vegetable farmers exclusively. Funds are granted
    on the same day as far as possible.
   Tobago Credit Pilot – Short term, low cost funding up to $50,000 targeting
    Tobago’s agri-business entrepreneurs in collaboration with the Business Development
    Company (BDC) and the Tobago House of Assembly (THA).
   Cocoa Revitaliser – Loan aimed at revitalizing the cocoa industry by targeting cocoa
    farmers. Full guarantee is provided by the Cocoa and Coffee Industry Board
   GroSafe Loan – Short term, low cost funding of up to $250,000 targeting food crop
    farms certified under NAMDEVCO’s Farm Certification and Monitoring Programme
    and Marketers of the produce of these farms.
   Youth Window – Loan up to $25,000 targeting individuals 18-35 years of age. It also
    provides technical and social support and its aim is to encourage our youth to become
    involved in the agricultural sector


                               ACCESSING FUNDING:
Funding is available to:-
Individuals who are:
 18 years and over
 Citizens or residents of Trinidad and Tobago
Companies that are:
 Registered in Trinidad and Tobago


In assessing a project for funding, the ADB undertakes an appraisal of the project
looking at the following:

PROJECT IDEA
 Costs- all associated costs must be identified
 Invoices and supporting documents in support of costs must be provided
CHARACTERISTICS OF THE OWNER
 Integrity - assists in determining credit worthiness
 Contribution - the willingness to offer the required contribution establishes the
  applicant’s commitment to the project
 Credit rating - relationship with other commercial institutions helps in determining
  integrity

VIABILITY OF THE PROJECT
This is established by the submission of:
 a projected cash flow with assumptions




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MARKETING
This is assessed in terms of:
 Potential (existing and proposed) – this analyses the demand for the product
 Competition – a comparative analysis with similar products and firms
 Strategies – price, place, promotion, product

TECHNICAL FEASIBILITY
This involves the determination of the adequacy of the following:
 utilities
 production process
 impact on the environment
MANAGEMENT
The following are assessed:
 skill
 experience
 capability

SECURITY/COLLATERAL
 establishes commitment to the debt by the borrower
 facilitates debt recovery
 comprises different types as follows:

                                  SECURITY TYPES
PROPERTY
 mortgages
 debentures

EQUIPMENT / VEHICLES
 bills of sale
 chattel mortgages

ASSIGNMENTS OF LIQUID ASSETS
 Fixed deposits
 Shares
 Units
 Mutual Funds
 Insurances
 Proceeds of sales

GUARANTEES
 Business Development Company
 Personal Guarantee
 Cocoa and Coffee Industry Board




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 What happens on loan application?
Application
A Loans Officer will assist in completion of the application, which should be submitted
together with supporting documents.
Appraisal
The Officer will then arrange a date with for visiting the project site. This is necessary for
the purpose of understanding the project and appraising the loan.
Approval
Once the loan is approved a Loan Offer is issued.
Execution
Following the acceptance of the offer the loan will then be executed. Loan execution
involves the signing of all legal documents after which loan funds can be issued.
Project Monitoring/Repayment
Our Loans Officers monitor all loans to ensure that projects are well implemented and
that the debt is repaid as arranged.
The Agricultural Development Bank welcomes the opportunity to meet the financing
needs of all entrepreneurs in the agribusiness sector and we are open to discussion of
such projects to determine the nature of assistance that can be offered.


Visit or call us at any of our conveniently located branches and let us discuss how
together we can turn your plans into profits.
                                   For further information
                                        Call toll-free
                                         800-4ADB
                          Or visit any one of the various locations
                                       Head Office
                              87 Henry Street, Port of Spain.
                              Tel: 623-6261-5 Fax: 624-3087
                                Email: adbp.o.s@tstt.net.tt
BRANCHES OF THE ADB

North Office                                   Central Office            )
No. 87 Henry Street                            29 Ramsaran Street         )
Port of Spain                                  Chaguanas                  ) MONDAYS
Tel: 623 – 6261/5                              Tel: 665 – 5861            )
                                                                          )   TO
South Office                                   Tobago Office              )
7 Cipero Street                                Unit 3 B Campbell Building ) FRIDAYS
San Fernando                                   Burnett Street             )
Tel: 652 - 3084                                Scarborough, Tobago        )
                                               Tel: 639 – 2888            )


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SUB OFFICES
                                    TRINIDAD

Ministry of Agriculture,       Ministry of Agriculture,        )
Land and Marine Resources      Land and Marine Resources       )
County Agricultural Office     El Reposo Demonstration Station )
Farm Road                      Oropouche Road                  ) ON
Curepe                         Sangre Grande                   )
Tel: 663 - 7752                Tel: 691 – 3718                 ) WEDNESDAYS
                                                               )
Ministry of Agriculture,                                       ) ONLY
Land and Marine Resources                                      )
Country Agricultural Office                                    )
Amazon Road                                                    )
Wallerfield                                                    )
Tel: 667 – 9016

Ministry of Agriculture                 NAMDEVCO Wholesale Market
Land and Marine Resources               S.S. Erin Road
Ecclesville Road                        Debe
Ecclesville                             Tel: 647 - 0061
Rio Claro                               Thursdays only
1st and 3rd Wednesday every month
                                    TOBAGO

Marketing Building
Department of Agriculture
Tobago House of Assembly
Louis D’Or
Thursdays only




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