Our Reporter: AMECHI OGBONNA
The Asset Management Corporation of Nigeria (AMCON) yesterday announced in Abuja that it has completed the scheduled redemption of the AMCON Series V N976,042,060,000 Zero-Coupon Bonds (the Series V Bonds) due October 2014, at par.
The bond redemption was coming nearly one year after it redeemed about N1 trillion of its issued Series I, II, III and IV Bonds in December 2013.With this development, AMCON has now fully retired a total of N1,874,379,519,000 of all bonds issued since inception. A statement issued by the bad bank at the end of its meeting Tuesday noted that the development puts it ahead of its planned redemption schedule, considering that all its publicly held bonds have been redeemed before the end of its 4th full year of operations. AMCON had issued zero coupon bonds with a face value of N5.67 trillion as Series I, II, III, IV and V, between December 2010 and December 2011.
The Series V redemption was financed utilising AMCON’s internally generated cashflows and the Banking Sector Resolution Trust Fund (the Sinking Fund). The Sinking Fund is funded by annual contributions from Nigerian Deposit Money Banks, which are expected to pool about .05 per cent of their profit before tax and the Central Bank of Nigeria (CBN). AMCON management however noted that the collaboration and support of the CBN was critical in ensuring the success of the process.
Mrs. Mofoluke B. Dosumu, Executive Director, Finance & Corporate Services/CFO of AMCON said, “the redemption represents a major milestone in the reduction of AMCON’s obligations, as it signifies the retirement of all bonds held by the public markets. We will continue to make good progress with respect to our obligations to the Central Bank of Nigeria, presently the sole holder of AMCON’s outstanding debt obligations.”
Source : SunOnline