First Holdco Plc (former FBN Holdings Plc) has assured the investing public that it would sustain dividend payments in 2025 and beyond.
Clarifying its stance concerning the regulatory forbearance in respect of Single Obligor Limit (SOL) and other credit facilities, First HoldCo Plc stated thus:
“The SOL breach of our primary subsidiary, First Bank of Nigeria Ltd, is related to two customers with foreign currency loans arising from over 200% currency devaluation in 2023/2024. With the planned completion of the capital raise in the second half of 2025 among other measures, the Bank will cure the breach in this regard
Furthermore, the Bank’s forborne loans are in respect of syndicated facilities that are industry exposures. The consortium of lenders is working to re-tenor the facilities to align with their cash flows as all the assets are back to active production and generating appreciable revenue. Some also have receivables that are awaiting payment from relevant agencies of government. Syndicate lenders will ensure the processes are concluded within the current financial year. Any loan not fully re-tenored will be fully provisioned and exit forbearance.
As a well-diversified financial holding Company, FirstHoldCo will sustain its dividend payments in 2025 and beyond as we remain committed to our esteemed stakeholders”.