The Asset Management Company of Nigeria (AMCON) will redeem N1 trillion series one, two, three and four bonds held by institutions outside the central bank on December 30, 2013 . To ensure that nothing untoward happens to the money, the Central Bank of Nigeria (CBN) is already in possession of the fund preparatory to redemption. Addressing journalists in Abuja on Friday at the agreement signing ceremony between CBN and AMCON for the bonds’ redemption, the Governor of the Central Bank , Mallam Sanusi Lamido Sanusi, disclosed further that by October next year, and additional N1 trillion bond for series five would be redeemed by AMCON. Sanusi stated that redemption of the N1 trillion bonds became necessary after the N5.7 trillion bonds issued had enabled AMCON to improve the liquidity of troubled banks. According to Sanusi, “Some of the money will come from the sale of the underlying assets by AMCON and the N5.7 trillion includes interest component, the amount AMCON owes of N3.8 trillion. We are at a point where AMCON’s balance sheet has enabled them to raise enough money to pay for this bond.” The CBN governor added that when both tranches of redemption are completed by October next year, “the only creditor to AMCON will be the CBN. No one will hold AMCON bond. So this will now be AMCON owing the central bank and this is credit positive for this economy.” Also commenting on the planned redemption of the bonds, the Managing Director of AMCON, Mr Mustafa Chike-Obi , said “the first step of reducing its (AMCON) obligations from N5.7 trillion to N3.8 trillion, which is 30 per cent reduction, will continue so as to reduce our indebtedness every year, so that by the year 2023, AMCON is even and there is no burden on the Federal Government of Nigeria.” He noted that AMCON still has a lot of debts to recover, adding that AMCON will continue to dispose off assets to enable it redeem its obligations.
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