Less than 48 hours after saying the terms of its loan with First Bank of Nigeria (FBN) have been fulfilled , the Honeywell Group has come out to explain that the facility was being serviced, having gone down by 30 per cent in the last two and half years.
According to the company, the Honeywell Group and the bank have had a professional business relationship since 1975, which preceded the group’s investment in the bank over a decade later.
It explained in a statement that the credit facilities accessed from First Bank were granted after due negotiations, with the necessary documentations and in line with regulatory policies and industry standards.
It added that following agreed terms, its facilities are adequately secured with First Bank with collaterals in place at over 170 per cent of forced sales value and 230 per cent at open market value.
It stated: “In 2015, First Bank 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 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.”