Banking & FinanceBusiness

We ’ll continue to repay FBN loan facility based on agreed terms – Honeywell replies CBN

Honeywell Flour Mills, a food and agro-allied company, says it will continue to repay its credit facility to First Bank of Nigeria (FBN) based on agreed terms.
Yewande Giwa, Company Secretary of Honeywell, said this in a statement on Friday.
On Thursday, the Central Bank of Nigeria (CBN) had instructed Honeywell to fully repay its obligations to First Bank within 48 hours, warning that failure to do so will prompt it to take appropriate regulatory measures against the insider borrower (Oba Otudeko) and the bank.
Following a query on the removal of Sola Adeduntan as managing director and chief executive officer of First Bank, the apex bank directed the lender to divest equity investments in Honeywell and Airtel Nigeria within 90 days.
The apex bank said First Bank had not complied with regulatory directives on divesting its interest in Honeywell despite several reminders.
CBN added that First Bank’s failure to perfect the pledge and satisfy conditions for regulatory approval had resulted in the invalidation of such restructuring and the credit facilities are now payable immediately.
Responding to CBN’s directive, Honeywell said: “With reference to the credit facility with First Bank of Nigeria (FBN); over many decades, the company has had a long standing, mutually beneficial credit relationship and continues to fulfil all its obligations to the Bank, and all its facilities are fully performing.
“Honeywell Flour Mills Plc has adequate security to cover its loan exposure and has not defaulted nor shown signs of distress.
“The terms of the loan with FBN have been fulfilled in line with industry standards and in accordance with agreed terms throughout its course and the Company expects to continue to do so.
“We remain committed to complying with regulations governing our industry and our obligations to First Bank and our various financial counterparts.”

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