(Corrects spelling of name in second paragraph of story published Dec. 16.)
The Asset Management Corp. of Nigeria, or Amcon, set up to buy bad debts from commercial banks, said it will sell unregistered bonds as it won’t have time to list the securities at regulatory authorities by the end of this year.
The paper, known as “consideration” bonds, won’t be tradable and will be replaced by fully registered bonds on Jan. 31, Foluke Dosumu, the company’s executive director for finance, said at a meeting with lenders in Lagos today. Once that happens, the bonds will be tradable.
Amcon will raise 1 trillion naira ($6.5 billion) from the bonds, which will be used to finance purchases of non-performing loans, Dosumu said. The purchase will take place on Dec. 30, she said. The company will sell a total of 2.5 trillion naira of three-year, zero-coupon bonds, managing director Mustafa Chike- Obi said in an interview on Dec. 1.
Nigerian banks cut lending after a debt crisis in 2008 and 2009 threatened the industry with collapse, until the Central Bank of Nigeria bailed out the banks with 620 billion naira and fired the chief executives of eight of the country’s 24 banks last year.
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