First HoldCo Plc has issued a clarification regarding the Central Bank of Nigeria’s (CBN) circular, which relates to regulatory forbearance on Single Obligor Limit (SOL) breaches and certain credit facilities.
According to the release, its primary banking subsidiary, First Bank of Nigeria Ltd, is managing an SOL breach related to two foreign currency loan exposures. These loans were significantly impacted by the over 200% naira devaluation between 2023 and 2024. The Bank expects to resolve the breach following the completion of its ongoing capital raise in the second half of 2025.
Additionally, the Bank’s other loans are in respect of syndicated facilities that are industry-specific exposures. The consortium of lenders is working to restructure the facilities to align with their cashflows as all the assets are back to active production and generating appreciable revenue. Some also have receivables that are awaiting payment from relevant government agencies. Syndicate lenders will ensure the processes are concluded within the current financial year. Any loan not fully re-tenured will be fully provisioned for exit from forbearance.
FirstHoldCo stated that it remains well-positioned to sustain dividend payments in 2025 and beyond, maintaining its commitment to shareholders.
