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AMCON completes redemption of N976bn bond

By BusinessNews Staff on November 6, 2014

The Asset Management Corporation of Nigeria (AMCON) yesterday announced in Abuja, that it had completed the scheduled redemption of its Series five N976,042,060,000 zero-coupon bonds that was due October 2014, at par.
In December 2013, AMCON had redeemed its issued Series I, II, III and IV Bonds. AMCON has now fully retired a total of N1,874,379,519,000 of all Bonds issued since inception, according to a statement from the corporation.
This puts it ahead of its planned redemption schedule, as 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 five redemption was financed utilising AMCON’s internally generated cashflows and the Banking Sector Resolution Trust Fund (the Sinking Fund),” it explained.
The Sinking Fund is funded by annual contributions from Nigerian deposit money banks and the Central Bank of Nigeria (CBN).
It added: “AMCON would like to note that thecollaboration and support of the CBN was critical in ensuring the success of the process.”
Executive Director, Finance & Corporate Services/CFO of AMCON, Mofoluke Dosumu said: “The Redemption represents a major milestone in the reduction of AMCON’s obligations, as it signifies the retirement of all AMCON 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.”

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