CALL MEMO

ORGANISATION: Manuchar Trading House International Ltd

ADDRESS: Addas Mall, 3Rd Floor, 8/10 Hakeem Balogun Street Agidingbi, Ikeja - Lagos.

CONTACT PERSON(S) Mr Matthias De Pauw - Country Manager

Mark Jacobs - Finance Director, Manuchar NV
Ikenna Nwosu- Finance Manager, Manuchar Nigeria

CALLING OFFICERS: - Babatunde Fateye – AGM/Zonal Head, Apapa 2

Anna Onyibe - Manager/Marketing Group head
Chigozie Ezenduka - Relationship Officer

DATE: January 31, 2024

BACKGROUND INFORMATION:
Manuchar Trading House Int’l Nig Limited is a subsidiary of Manuchar NV Belgium with their head office at Antwerp. The
company is jointly owned by Lone Star Funds USA (80%), Maas Family and Ackermans &Van Haaren (20%) with a total capital
base of $284.7million.
Manuchar is one of the leading distributors of chemicals across emerging markets and actively trades several other commodities
like steel, polymers, and many more. They have their operations in over 35 countries and 160 locations. They have over 2,600
employees/ professionals worldwide The company sells and distributes industrial chemicals in Nigeria such as Sodium Sulphate,
Soda Ash- Sodium Carbonate, Corn Starch, Stearic Acid, Caustic Soda Pearls (Sodium Hydroxide), Barite, monosodium
Glutamate, Glycreine, Caustic soda flakes etc. Manuchar NV is jointly owned by Lone Star Funds USA (80%), Maas Family and
Ackermans & Van Haaren (20%) with a capital base of $284.7million.

Manuchar Trading Nigeria currently supplies chemicals to Uniliver Plc, Cadbury, Nigerian Breweries, Seven Up, Henkel Nig Ltd
(Expan Global), Aspira Nig Ltd, Mamuda Industries, Promasidor Nig Ltd, Nestle Plc, Chi Limited, Beta Glass (Frigoglass) , West
African Seasoning Company and others.
They currently bank with Zenith, GTB, UBA, Union Bank, Access Bank, FCMB Optimus and Citi Bank. Their six months average
monthly turnover with Zenith Bank is N1.9billion and Dom balances of $4.5m
FACILITY DETAILS

FACILITY . TYPE EXISTING UTILISATION SECURITY PLEDGED STATUS

Invoice Discounting Line N500M N0.0 Irrevocable Letter of Domiciliation of Payments In-place (LDS in Place)

Six (6) months Turnover(Naira)

6-Mths T/o Aug’23 Sep’23 Oct’23 Nov’23 Dec’23 Jan’24 Total Avg

CR (=N='m) 1,313.90 2,397.19 2,249.72 1.657,72 832.00 3,443.60 11,894.13 1,982.36

DR (=N='m) 2,119.92 2,695.10 2,446.99 1,230.98 1,322.89 3,315.25 13,131.13 2,188.52

MARKET SHARE
Parameter Total/Monthly Zenith’s Share Other Banks % Zenith Monthly Share

FORM M $5m $4m $1m 80%

TURNOVER N7bn N2.5bn N4.5bn 35.7%

Total Form M opened with Zenith in 2023 was $47million. Total in January 2024 was $4.2milluom
Issues Discussed
The major issues discussed were:
 Business Outlook for the year 2024: The company projected a total sales volume of $100million
 The challenges in the FX market: Customer explained that they are unable to utilize their Invoice Discounting Line
due to FX price fluctuation. The currently deal with their customers on prepayments/ cash & carry basis. Customer is
requesting for LPO Discounting line of N5billion as against the existing Invoice Discounting Line.
They currently have supply contracts with under listed 11 large corporates totaling about N19.3billion which they will
want the bank to discount their LPO’s.
 Collateral: Customer is proposing to secure the facility with all or combination of the following:
1) Domiciliation of payment
2) Corporate guarantee of their parent company, Manuchar NV
3) Stocks in their warehouse
 Transaction Dynamics:
 Once the LPO is confirmed and accepted, Customer requires funds to source for FX in order to hedge
against FX price fluctuation. The purchased funds will be warehouse in the customer’s Dom account until the
Form M/ Bills for collections is matured and due for payment. They currently have FX balance of
$7.2million in their Dom account.
 Each transaction tranche is expected to circle out within 90 days. The importation and delivery of goods to
the client’s warehouse is expected to take average of 75 days and the client makes payment within the next
10days.
 Conclusion: Customer’s request/ proposals will be escalated to executive management and response/feedback
communicated to the customer

Below are the list of companies for which the customer would potentially like to discount LPO/ Proforma Invoices on quarterly
basis.
 Promasidor: NGN 3 billion
 Unilever: NGN 2 billion
 Nigerian Breweries (Heineken Group): NGN 500 million
 Cadbury (Mondelez): NGN 500 million
 Seven Up : NGN 2 billion
 Ajinomoto: NGN 3 billion
 West African Seasoning Company (TGI Group): NGN 2 billion
 Aspira Nig Ltd: NGN 3 billion
 Mamuda Industries: NGN 1 billion
 Beta Glass (Frigoglass): NGN 2 billion
 Chi Limited (Coca Cola): NGN 300 million

_________________
Chigozie Ezenduka
Relationship Officer

CC AGM/Zonal Head – Apapa 2