BY ZAKA KHALIQ, Lagos
Honeywell Group has promised to fulfill its loan obligations in banks nationwide, stating that all its loan facilities across banks are performing.
The company, in a statement yesterday, said it is servicing loan facilities obtained from First Bank of Nigeria Limited as well as other financial institutions to carry out its operations.
Like most companies, Honeywell Group said, 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.
Stressing that 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, it added that, 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.
It added 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 pointed out that, 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 that this was duly provided through an authorisation to place a lien on the shares.
The Honeywell Group directly employs over 10,000 men and women while also supporting thousands more through its partnerships and community programmes.