Page 86 - Honeywell Annual Report 2021 comm 10 09 v17a.cdr

Notes to the Financial Statements

For the Year Ended 31 March, 2021 cont’d

The carrying amounts and fair value of the non-current borrowings are as follow:

Carrying Carrying Fair Fair
amount amount value value
2021 2020 2021 2020
N'000 N'000 N'000 N'000
First Bank of Nigeria Limited- Term Loan (i) 10,366,432 10,665,986 10,366,432 10,665,986
First Bank of Nigeria Limited
(CBN intervention Fund) (ii) 125,000 166,666 125,000 166,666
Bank of Industry Limited (iii) 2,303,197 3,187,781 2,303,197 3,187,781
Fidelity Bank Plc RSSF (iv) 6,250,000 8,250,000 6,250,000 8,250,000
Polaris Bank Limited RSSF (v) 3,500,000 4,500,000 3,500,000 4,500,000
22,544,629 26,770,433 22,544,629 26,770,433

. Ÿ First Bank of Nigeria Limited Term loan was obtained in January 2017 to ease the Company's cash flow. The facility
has a restructured tenor of 6 years (72 months), quarterly repayment of principal and interest, and interest rate of
9% per annum.
ii. This represents First Bank of Nigeria Limited's Central Bank of Nigeria/Bank of Industry Intervention Fund
(term loan) of N 666,666,666. The loan has a tenor of seven (7) years, and interest rate of 7% interest per annum
with effect from January 2017. This is currently being covered in the same offer letter with (i) above.

iii. The loan from Bank of Industry Limited (BOI) was granted to the Company to finance the new Pasta Factory located
at Sagamu. The loan has a restructured tenor extended to February 2023, with 12 months moratorium on principal
repayment between January and December 2018. This facility is domiciled with Polaris Bank Limited.

iv. The Company obtained a loan of N10 billion from Fidelity Bank Plc, under the Central Bank of Nigeria (CBN)
Real Sector Support Fund (RSSF) Programme to finance the Sagamu expansion project. The loan was released in
two tranches. The first tranche was granted in April, 2017 with original expected payment date of 11th January,
2024 while the second tranche was granted in August, 2017 with expected repayment date of 24th May,
2024. The loans have a tenor of seven (7) years each inclusive of two (2) years moratorium on principal beginning
repayment from the date of first disbursement. Interest rate on the loan is 9%.

v. A loan of N5 billion was obtained from Skye Bank Plc, under the Central Bank of Nigeria (CBN) Real Sector Support
Fund (RSSF) Programme to finance the Sagamu expansion project. The loan was granted in October, 2017 with
expected repayment date of 10th October, 2024. The loans have a tenor of seven (7) years inclusive of two (2)
years moratorium on principal repayment beginning from the date of first disbursement. Interest rate on the
loan is 9%.

vi. The fair value of current borrowings equals their carrying amount, as the impact of discounting is not significant and
all the bank loans are performing.

Exposure to currency risk
The carrying amounts of borrowings is denominated in Naira. However, refer to note 31 for financial instruments and financial risk
management

Naira amount
Naira 60,484,793 55,336,989
Foreign currency per Naira
USD $495 -

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