๐๐๐ฉ๐๐ค๐ช๐ฉ ๐๐๐๐ฃ๐ ๐ฅ๐ค๐๐จ๐๐ ๐ฉ๐ค ๐๐ช๐ก๐ก๐ฎ ๐ง๐๐๐๐ฉ ๐ฉ๐ค ๐ง๐๐๐๐ฃ๐ฉ ๐๐ฃ๐ ๐๐๐ก๐จ๐ ๐ข๐๐๐๐ ๐ง๐๐ฅ๐ค๐ง๐ฉ๐จ ๐ง๐๐๐๐ง๐๐๐ฃ๐ ๐ ๐๐ค๐ข๐ข๐๐ง๐๐๐๐ก ๐ฉ๐ง๐๐ฃ๐จ๐๐๐ฉ๐๐ค๐ฃ ๐๐๐ฉ๐ฌ๐๐๐ฃ ๐๐๐ง๐จ๐ฉ ๐ฝ๐๐ฃ๐ ๐ค๐ ๐๐๐๐๐ง๐๐ ๐๐๐ข๐๐ฉ๐๐ ๐๐ฃ๐ ๐๐๐ฃ๐๐ง๐๐ก ๐๐ฎ๐๐ง๐ค๐๐๐ง๐๐ค๐ฃ๐จ ๐๐๐ข๐๐ฉ๐๐ ๐๐๐๐๐ช๐จ๐ ๐๐ฉ ๐๐จ ๐๐ช๐ง๐ง๐๐ฃ๐ฉ๐ก๐ฎ ๐ ๐จ๐ช๐๐๐๐๐ฉ ๐ค๐ ๐ก๐๐ฉ๐๐๐๐ฉ๐๐ค๐ฃ, ๐ฉ๐๐ ๐๐ค๐ง๐ข๐๐ง ๐๐จ ๐๐ค๐ฃ๐จ๐ฉ๐ง๐๐๐ฃ๐๐ ๐ฉ๐ค ๐๐จ๐จ๐ช๐ ๐จ๐ค๐ข๐ ๐๐ก๐๐ง๐๐๐๐๐๐ฉ๐๐ค๐ฃ๐จ ๐ค๐ฃ ๐ฉ๐๐ ๐ข๐๐ฉ๐ฉ๐๐ง.
๐๐๐ ๐๐ค๐ก๐ก๐ค๐ฌ๐๐ฃ๐ ๐๐จ ๐ ๐ฅ๐ง๐๐จ๐จ ๐จ๐ฉ๐๐ฉ๐๐ข๐๐ฃ๐ฉ ๐ค๐ฃ ๐ฉ๐๐ ๐ข๐๐ฉ๐ฉ๐๐ง, ๐ข๐๐๐ ๐๐ซ๐๐๐ก๐๐๐ก๐ ๐ฉ๐ค ๐๐๐ง๐จ๐ฉ๐๐๐๐๐ง๐๐๐๐:
Our attention has been drawn to recent media reports regarding a commercial transaction between First Bank of Nigeria Limited (FirstBank) and General Hydrocarbons Limited (GHL) that is currently a subject of litigation.
As a responsible and law-abiding corporate citizen of Nigeria with utmost respect for the courts, FirstBank will not be able to offer comments on issues which are pending for determination by the courts, as such issues are sub-judice.
However, we are constrained to issue the following clarifications to correct the sponsored but false narratives on the matter presented in some of the media publications.
There is a subsisting commercial transaction between FirstBank as lender, and GHL as borrower, where FirstBank extended several credit facilities to GHL for the development of some Oil Mining Lease assets.
These facilities are backed by very robust loan agreements executed by the parties in which the obligations of the parties are clearly defined and the security arrangement clearly spelt out.
While FirstBank has diligently performed its obligations under the loan agreements, at the root of the present dispute is FirstBankโs demand for good governance and transparency in the transaction, which GHL rejected.
Upon FirstBankโs realization of breaches on the part of GHL including diversion of proceeds, FirstBank requested that an independent operator mutually acceptable to both parties be appointed in line with the terms of the agreement, to operate the financed asset in a transparent manner that will bring greater visibility to the project, protect the interest of, and bring value to all stakeholders. Not only did GHL roundly reject this reasonable and fair request, rather GHL insisted that FirstBank avails it with more funding. GHL refused to execute the terms of offer stipulated by the Bank for the availment of additional funding but rather proceeded to commence needless Arbitral proceedings.
GHL issued a notice to initiate arbitration and has no substantive claim pending at the Federal High Court. GHL approached the Federal High Court solely to seek preservative orders pending arbitration. Some of the preservative orders sought by GHL were granted while others were denied.
FirstBank is the only party that filed a substantive claim against GHL at the Federal High Court and the subject matter of FirstBank ‘s claim is not identical with the dispute GHL submitted to arbitration because FirstBank’s claim is in respect of subsequent credit facilities granted to GHL and the offer letters and finance documents pertaining to the subsequent transactions clearly state that the disputes arising from the subsequent facilities are to be resolved by a court of competent jurisdiction in Nigeria and not by arbitration.
Consequently, it is incorrect to assert that FirstBank abused the process of the court.
GHL off-took crude from the Floating Production Storage and Offloading (FPSO) vessel and diverted the proceeds. The Bank had no choice as a secured lender, under these circumstances of continued breaches, non-payment of due obligations and attempts to shield the Bank away from agreed security and repayment sources, than to approach the court for legal remedies, to preserve assets, recover the diverted proceeds, prevent reoccurrences and safeguard FirstBankโs interest. It is clear to us that the courts do not support or protect illegalities and breaches of contracts.
FirstBank has a long and very rich history of supporting and providing for the financial needs of its customers over its more than 130 years of unbroken existence. FirstBank remains committed to ensuring that it continues to support legitimate business aspirations of its teeming customers. At the same time, FirstBank is committed to the building of a strong credit culture where borrowers pay their debts when they borrow and will always take appropriate steps, within the ambit of the law, to resist attempts by borrowers to repudiate their repayment obligations.
We wish to assure FirstBankโs numerous customers, stakeholders and the general public that FirstBank remains solid, calm, steadfast and unflinching in its resolve to continue to provide first-class services to its teeming customers within and outside the country.
FirstBank also wishes to respectfully thank our shareholders for the indicatively oversubscribed Rights Issue of its parent Company, First Holdco Plc (โFirstHoldcoโ), in the first round of its capital raise and looks forward to an equally successful final leg of the recapitalization exercise when it is announced by FirstHoldco.
Thank you.