Honeywell Group said it has met its credit obligations to FirstBank, saying none of its credit obligations, is non-performing.

“We have serviced all our credit facilities in line with the terms agreed with First Bank and at no point have any of these facilities been non-performing,” the Honeywell Group said in a statement yesterday.

In its reaction to the recent development that erupted over the Central Bank of Nigeria’s (CBN’s) response to the purported sack of the bank’s Managing Director and the consequent directive that First Bank should recover debts owed it by Honeywell Group, the company said since 1972, Honeywell Group and FirstBank of Nigeria have had a professional business relationship which preceded the Group’s investment in FirstBank over a decade later.

“Honeywell Group’s relationship with FirstBank has always been professional, at arm’s length and in accordance with all regulatory and industry practices and norms. The credit facilities which we have accessed from FirstBank and indeed other banks, were granted after due negotiations with the necessary documentation and in line with regulatory policies and industry standards.

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“Like most companies, Honeywell Group utilises its own equity and borrows from banks and other financial institutions to carry out its operations. Partnering with local and international financiers, we have a strong track record of mutually beneficial successes with our partners, based on honouring obligations and delivering returns to all stakeholders,”Honeywell Group said.

It recalled that in 2015, FirstBank under the directive of the Central Bank of Nigeria (CBN), drew our attention to a 2004 circular (BSD/9/2004), which requires that insider related facilities must not exceed 10 per cent of paid-up share capital.

“Based on this directive we subsequently entered negotiations with the bank to agree an appropriate repayment structure and the final negotiated position was duly approved by the CBN.”

“It is important to note that from the inception of the facilities and to-date, the facilities have been performing,” Honeywell said.

In accordance with agreed terms, our facilities are adequately secured with First Bank, with collaterals in place at over 170% of Forced Sales Value and 230% at Open Market Value.

https://thenationonlineng.net/honeywell-group-weve-met-our-credit-obligations-to-firstbank/


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