DASHEN BANK

Date: October 23, 2023

To : Chief Corporate Banking Business Officer

From: Director Institutional Directorate and Senior

Manager Investor Relation

Subject: Exception Approval Request

Dear,

Searching of the ultra value customers and interface with the bank is one of
the enumerated task bestowed by the Investor Relation Unit. Based on the
captioned objective, we have been exert our at most effort to control the FDI
corridor. In doing so, we exhibit considerable achievement in the last fiscal
period. However, as a nature of the market, when new FDI entrants join the
country they host by the consulates. In understanding this some of the
competitors offers the consultants various incentives based on their reference.

Unlike the other competitors we are not in a position to entertain the

consultants for incentivised for better reference though there are a number of
requests. Accordingly, we propose a product that considers the emerging need
in the market. Therefore, we propose a product that meets the emerging
market needs. The product proposal is in progress. In the meantime, one of our
prominent customers, who has deposits in both currencies and is a well-known
international lawyer, has applied for a car consumer loan, after bringing the
 below mentioned FDI companies. We kindly request your approval for this
exception.

Role of the FDI Consulates in the Market ; - FDI consultants play a crucial role
in the market by bringing new customers to the bank. They have a deep
understanding of the market and are able to identify potential customers who
would benefit from our products and services. By working closely with FDI
consultants, we are able to reach a wider audience and attract more customers
to our bank. We value the role that FDI consultants play in the market and are
committed to working closely with them to bring more customers to our bank.
We believe that this new product will be a valuable tool for FDI consultants in
their efforts to refer more customers, and we look forward to a successful
partnership

Detail Customers Refer made by the applicant; -

Kiya Associates Law Office has been a valuable partner for our bank since the
beginning of our collaboration. They have not only referred numerous
customers who brought in over a million dollars in revenue, but also helped us
acquire new foreign direct investment companies as clients. We appreciate
their professionalism and expertise in the legal field . List of customers along
with the generated dollars stated hereunder; -

Name of the company USD Amount Debit Credit Current

Turnover Turnover Balance
Headlight Consulting LLC 213,878.43 10,084,864 11,752,875 1,668,011

S&E Hotels and Resorts 1,147,512.00 38,366,492 61,442,752 23,076,259

Investment plc

MOOVON Group Ethiopia Branch The account already opened, underway for wiring of initial investment amount of USD
200,000.00
French Business Association in
Initial Deposit of 1 Million ETB, have a potential to recruit French business
Ethiopia
 Potential Companies which is going to be tunnelled through kiya &
Associates Law office

Name of the company Potential USD Amount Company Type

Swedish International Water Institute Approximately 2 Million USD International NGO

annual Turnover

Zura Holdings PLC(Betting Over 1.2 Million USD annual International Betting
Company) Turnover company

Tiruzer Food & Cosmetics Over 500 K USD Initial Investment A Food supplement &
Processing Share company cosmetics manufacturing
Company

Igado Ethiopia Branch office (a More than 1 Million USD Annual Value added Telecom
value Added telecom service Turnover service agreement in
provider ) IP TV place with Ethio-telecom

Request:

Kiya Associates Law Office is a reputable legal firm in Ethiopia, operating since
2018 under the Advocacy licence number 3824/11 with 12 years of corporate
legal experience. The company has a steady and diversified income in both
foreign currency (FCY) and local currency (Birr). The company earns at least
2000 USD per month from a contract with a foreign client, in addition to its
income from other sources in Birr (All the USD base contract enclosed
herewith). The company has also helped many foreign direct investment (FDI)
companies to establish their presence in Ethiopia, providing them with legal
advice and services.
The company intends to purchase a car worth 3,800,000 Birr with a five-year
loan that has equal monthly installments. According to the attached letter,
the company will provide 20 percent of the car’s value as equity contribution,
of which 10 percent will be in USD and the rest in Birr. The company will also
repay the loan in both currencies, with 20,000 in USD and the remaining
amount in Birr. The company has a good a sound repayment plan, as evidenced
by its financial statements and bank statement for the generation of the FCY.

Recommendation:

Basis of Recommendation; - We consider this request as a strategic move that

will benefit our bank and our customer in the long run. By approving this loan,
we will be able to leverage the consultant networks that the applicant has
established with various FDI clients. This will increase our exposure and
reputation in the FDI market and help us gain more customers in the future.
Moreover, the applicant has shown his commitment and trust in our bank by
offering to raise 10% of the equity in USD and pay up to USD 20,000.00 in loan
instalments over a period of time. He has also provided a contract that
guarantees the repayment in USD, which reduces our currency risk. We believe
that this will create a strong and lasting relationship with the applicant and
encourage other consultants to work with our bank for managing the FDI inflow
that comes to the country. Furthermore, we can also respond to the long-
standing demand of the consultants who have been asking for more flexible and
convenient loan options for their incentive needs. Based on the above basis of
recommendation, we recommend a car acquisition term loan of Birr
3,040,000.00 for five years with equal monthly repayments of Birr 45,000
at 7% interest rate per annum. Out of the total loan amount, Birr
1,020,000.00 will be paid in USD. This loan offer is competitive and attractive
compared to other banks in the market and reflects our confidence and
appreciation of the applicant’s business potential and loyalty. This opportunity
is a game-changer for our business. By capitalizing on it, we can draw in more
FDI consultants who have the expertise and connections to select the most
suitable banks for the new FDI entrants in our market. This will not only boost
our reputation and credibility in the FDI sector, but also give us a competitive
edge over our rivals. As a result, we will be able to increase our market share
and strengthen our resource mobilization capacity in both local and foreign
currencies.

Betelehem Worku Kassa Mohammed

Director Institutional Directorate Senior Manager- Investor Relation

Signature