The Honeywell Group says the loan it obtained from First Bank of Nigeria is being serviced and not non-performing.
The management of Honeywell in a statement issued in Lagos on Sunday, explained that its loan obligation to the bank had been reduced by 30 per cent in the last two and half years.
This is coming after the Central Bank of Nigeria’s claimed the loan breached regulatory requirements and directed Honeywell to fully repay its obligations to First Bank within 48 hours
The apex bank stated that that First Bank had failed to comply with regulatory directives on divesting its interest in Honeywell despite several reminders.
As such, the financial regulator ordered First Bank to forward evidence showing that it had divested its interest in Honeywell and Bharti Airtel Nigeria Limited within 90 days.
According to the Honeywell Group, the credit facilitiesit received from First Bank were granted after due negotiations, with the necessary documentation and in line with regulatory policies and industry standards.
The statement said, “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 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.
“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.”