The Honeywell Group has said that its loan with First Bank was being serviced and it had reduced the facility by 30 percent in the last two and half years
The group, in a statement on Sunday, said the company and the bank had had a professional business relationship since 1975, which preceded the group’s investment in the bank over a decade later.
It explained that the credit facilities accessed from First Bank were granted after due negotiations, with the necessary documentation and in line with regulatory policies and industry standards.
The group further said that following agreed terms, its facilities were adequately secured with First Bank with collaterals in place at over 170 percent of forced sales value and 230 percent at open market value.
It stated, “In 2015, First Bank, under the directive of the Central Bank of Nigeria, drew our attention to a 2004 circular (BSD/9/2004) which requires that insider related facilities must not exceed 10 percent of paid-up share capital.
“Based on this directive we subsequently entered negotiations with the bank to agree on an appropriate repayment structure and the final negotiated position was duly approved by the CBN.
“In addition to the above, First Bank, on the directive of CBN, requested additional security in the form of FBN Holdings Plc shares held by the Chairman of Honeywell Group, Dr. Oba Otudeko, citing a 2001 circular. This was duly provided through an authorisation to place a lien on the shares.”
“Honeywell Group has continued to meet all its obligations on its facilities with the bank according to agreed terms and has reduced its exposure by nearly 30 percent in 2.5 years. The facilities were charged at market rate and the bank continues to earn interest therefrom.”
Culled from Thewillinigeria report our-debts-well-serviced-due-processed-by-cbn-reduced-by-30-in-2-years-honeywell-group