Nigeria: AMCON delays the floating of N1.5 trillion bond issue

The Asset Management Corporation of Nigeria (AMCON) has delayed its planned floating of the N1.5 trillion bond issue because it is yet to receive the required waivers and approvals from the Ministry of Finance and the Debt Management Office (DMO).

AMCON had previously planned to float the fully trade-able N1.5 trillion bonds, which is to replace the N1.03 trillion-worth consideration bonds issued to 21 commercial banks in December 2010, on Monday 31st January.

AMCON's managing director, Mustapha Chike Obi, explained that the bond issue had to be postponed until 28th February because of “procedural issues”. He further explained that the waivers sought are to enable AMCON issue the trade-able bonds as a new company and the necessary exemptions from the Securities and Exchange Commission (SEC).

Obi also stated that AMCON still has plans to issue an extra N500 billion to soak up the remaining Non Performing Loans (NPLs) from other banks when retiring the consideration bonds this month. AMCON's main term of reference is to buy up all the bad debts and NPLs in Nigeria's banking industry in order to properly reposition the country's ailing financial industry.

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