The Honeywell Group on Sunday, May 2, disclosed that it has started servicing its First Bank loans.
The group explained that its loan obligation to the bank had been reduced by 30 percent in the last two and half years.
The company disclosed this after its chairman Honeywell Group, Oba Otudeko, who also served as chairman of FBN Holdings PLC was sacked along with other directors on Thursday by the CBN.
The oganisation noted that since 1972, the group and First Bank had had a professional business relationship that preceded the group’s investment in the bank over a decade later.
Honeywell Group, in a statement said 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 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 percent 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, Oba Otudeko citing a 2001 circular. This was duly provided through an authorisation to place a lien on the shares.”
Techeconomy.ng reported that the financial institution previously announced the appointments of Seni Adetu and Mrs. Juliet Anammah as Independent Non-Executive directors, while Otu Hughes has been appointed as a Non-Executive director.
These appointments are subject to the approval of the Central Bank of Nigeria (“CBN”).
Speaking on the appointments, the Group Chairman of FBN Holdings Plc, Dr. Oba Otudeko, CFR, said: “On behalf of the board, management and staff of FBNHoldings, I am delighted to welcome the trio of Seni Adetu, Mrs. Juliet Anammah and Otu Hughes to the FBNHoldings board as they bring on board their combined professional experience and expertise of over 97 years, cutting across various industries and institutions of global repute.”
“I am certain that these rich experiences will have immediate and long-term impact on the group and its subsidiaries across Africa and beyond,” he added further.