FirstHoldCo Plc has assured of its commitment to comply with the Central Bank of Nigeria’s (CBN) prudential regulations, including resolving breaches of the Single Obligor Limit (SOL) and exiting forbearance on credit facilities.
The bank also assured shareholders of its intention to continue with dividend payments in 2025 and beyond.
In a statement issued on Thursday, June 19, 2025, the bank explained that the Single Obligor Limit (SOL) breach by its banking subsidiary, FirstBank, relates to two foreign currency loan exposures that were impacted by the over 200% Naira devaluation between 2023 and 2024.
The bank further revealed it is undertaking a capital raise expected to be completed in the second half of 2025. This move, along with other corrective measures, is expected to help the bank restore compliance with prudential limits.
Regarding the forbearance of credit facilities, FirstHoldCo noted that the affected loans are part of syndicated industry exposures. The consortium of lenders involved is currently working to restructure and re-tenor the facilities in line with improved asset performance and cash flow.
“All the assets are back to active production and generating appreciable revenue,” the statement said, adding that some of the underlying projects also have outstanding receivables awaiting payment from relevant government agencies.
FirstHoldCo emphasized that the syndicate is expected to conclude the restructuring process within the current financial year.
If any loan is not fully re-tenored, FirstHoldco assured that full provisioning will be made to enable a clean exit from forbearance.
