AMCON redeems N867bn in bonds

Asset Management Corporation of Nigeria (AMCON) repaid 867 billion naira ($5.24 billion) worth of bonds on Friday, cutting its liabilities to around 3 trillion naira, bankers said.

Dealers said 30 percent of the bond, representing about 260 billion naira, is expected to come in the system in form of cash, while the balance would be in treasury bills, transferring that part of the liability to the central bank.

AMCON was set up to absorb bad debts left over from a 2008/9 financial crisis that nearly bankrupted nine lenders until the central bank bailed them out to the tune of $4 billion, forcing many of them to restructure. There was no immediate comment from AMCON.