FIRSTBANK CLARIFIES MISLEADING REPORTS, REASSURES CUSTOMERS OF GOLD STANDARD BANKING SERVICES

Our consideration has been drawn to latest media experiences relating to a industrial transaction between First Bank of Nigeria Restricted (FirstBank) and Basic Hydrocarbons Restricted (GHL) that’s presently a topic of litigation.

As a accountable and law-abiding company citizen of Nigeria with utmost respect for the courts, FirstBank will be unable to supply feedback on points that are pending for dedication by the courts, as such points are sub-judice.

Nevertheless, we’re constrained to concern the next clarifications to right the sponsored however false narratives on the matter introduced in a few of the media publications.

There’s a subsisting industrial transaction between FirstBank as lender, and GHL as borrower, the place FirstBank prolonged a number of credit score services to GHL for the event of some Oil Mining Lease property.

These services are backed by very sturdy mortgage agreements executed by the events through which the obligations of the events are clearly outlined and the safety association clearly spelt out.

Whereas FirstBank has diligently carried out its obligations beneath the mortgage agreements, on the root of the current dispute is FirstBank’s demand for good governance and transparency within the transaction, which GHL rejected.

Upon FirstBank’s realization of breaches on the a part of GHL together with diversion of proceeds, FirstBank requested that an unbiased operator mutually acceptable to each events be appointed according to the phrases of the settlement, to function the financed asset in a clear method that can carry better visibility to the undertaking, shield the curiosity of, and produce worth to all stakeholders. Not solely did GHL roundly reject this affordable and truthful request, moderately GHL insisted that FirstBank avails it with extra funding. GHL refused to execute the phrases of supply stipulated by the Financial institution for the availment of extra funding however moderately proceeded to begin useless Arbitral proceedings.

GHL issued a discover to provoke arbitration and has no substantive declare pending on the Federal Excessive Court docket. GHL approached the Federal Excessive Court docket solely to hunt preservative orders pending arbitration. Among the preservative orders sought by GHL have been granted whereas others have been denied.

FirstBank is the one celebration that filed a substantive declare in opposition to GHL on the Federal Excessive Court docket and the subject material of FirstBank ‘s declare shouldn’t be equivalent with the dispute GHL submitted to arbitration as a result of FirstBank’s declare is in respect of subsequent credit score services granted to GHL and the supply letters and finance paperwork pertaining to the next transactions clearly state that the disputes arising from the next services are to be resolved by a courtroom of competent jurisdiction in Nigeria and never by arbitration.

Consequently, it’s incorrect to claim that FirstBank abused the method of the courtroom.

GHL off-took crude from the Floating Manufacturing Storage and Offloading (FPSO) vessel and diverted the proceeds. The Financial institution had no alternative as a secured lender, beneath these circumstances of continued breaches, non-payment of due obligations and makes an attempt to protect the Financial institution away from agreed safety and reimbursement sources, than to strategy the courtroom for authorized treatments, to protect property, get better the diverted proceeds, stop reoccurrences and safeguard FirstBank’s curiosity. It’s clear to us that the courts don’t assist or shield illegalities and breaches of contracts.

FirstBank has a protracted and really wealthy historical past of supporting and offering for the monetary wants of its prospects over its greater than 130 years of unbroken existence.  FirstBank stays dedicated to making sure that it continues to assist legit enterprise aspirations of its teeming prospects. On the similar time, FirstBank is dedicated to the constructing of a robust credit score tradition the place debtors pay their money owed after they borrow and can at all times take applicable steps, throughout the ambit of the regulation, to withstand makes an attempt by debtors to repudiate their reimbursement obligations.

We want to guarantee FirstBank’s quite a few prospects, stakeholders and most of the people that FirstBank stays strong, calm, steadfast and unflinching in its resolve to proceed to supply first-class providers to its teeming prospects inside and outdoors the nation.

FirstBank additionally needs to respectfully thank our shareholders for the indicatively oversubscribed Rights Difficulty of its father or mother Firm, First Holdco Plc (“FirstHoldco”), within the first spherical of its capital elevate and appears ahead to an equally profitable closing leg of the recapitalization train when it’s introduced by FirstHoldco.

Thanks.