Our Debts Are Being Serviced, Says Honeywell Group

Honeywell Group has said it is servicing loan facilities obtained from First Bank of Nigeria Limited and other financial institutions to carry out its operations.

The company, in a statement released in Lagos, said like most companies, it utilises its own equity and borrows from banks and other financial institutions to carry out its operations. It added that it has a strong track record of mutually beneficial successes with its local and international financiers based on honouring obligations and delivering returns to all stakeholders.

The statement said since 1972, Honeywell Group and First Bank of Nigeria have had a professional business relationship that preceded its investment in the bank over a decade later.

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It said the company’s relationship with First Bank has always been professional, at arm’s length and in accordance with all regulatory and industry practices and norms. The credit facilities accessed from First Bank and other banks were granted after due negotiations, with the necessary documentation and in line with regulatory policies and industry standards, the statement said.

The statement explained further that the Honeywell Group has serviced all its credit facilities in line with the terms agreed with First Bank and at no point has any of these facilities been non-performing.

The company said in 2015, First Bank under the directive of the Central Bank of Nigeria (CBN), drew its attention to a 2004 circular (BSD/9/2004) which required that insider related facilities must not exceed 10 per cent of paid-up share capital.

It said based on this directive, the Honeywell Group subsequently entered negotiations with the bank to agree on an appropriate repayment structure and the final negotiated position was duly approved by the CBN, adding that it is important to note that the facilities have been performing from inception and to-date.

The company said in accordance with agreed terms, its facilities with First Bank are adequately secured with collaterals in place at over 170 per cent of Forced Sales Value and 230 per cent at Open Market Value.

The statement said in addition to this, 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 and this was duly provided through an authorisation to place a lien on the shares.

It said the Honeywell Group has continued to meet all its obligations on its facilities with First Bank according to agreed terms and has reduced its exposure by nearly 30 per cent in 2.5 years. The facilities were charged at market rates and the lender continues to earn significant interest therefrom, the statement said.

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The Honeywell Group said it has positively impacted the communities in which it operates over the last five decades of its existence.

Also, the company has been at the forefront of the development of key sectors in the Nigerian economy, including telecommunications, real estate and financial services through its investments and involvement in food manufacturing and processing companies and has contributed to feeding Nigerians for over 50 years with staples such as flour, noodles, pasta, dairy and fish.

The statement asserted that the Group is a law-abiding, responsible corporate citizen, employing thousands of Nigerians, supporting its communities, delivering value to its stakeholders and complying with regulatory requirements while remaining committed to delivering enduring value and improving lives.

“The Honeywell Group is a Nigerian investment holding company deeply vested in critical sectors of the economy such as financial services, hospitality, energy, infrastructure and foods. It directly employs over 10,000 men and women while also supporting thousands more through its partnerships and community programmes.”

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“With nearly 50 years of operations, the Honeywell Group has continued to positively impact communities and the lives of millions of Nigerians from connecting communities to the national power grid, to providing nourishment to over four million households annually and it is also a longstanding positive contributor to its communities and the overall growth and development of the country.”