Connect with us

Finance

CJN, Appeal Court President Advise AMCON on Debt Recovery

Published

on

AMCON
  • CJN, Appeal Court President Advise AMCON on Debt Recovery

In a move that will enable the Asset Management Corporation of Nigeria to meet its debt recovery mandate before its sunset period, the Chief Justice of Nigeria, Justice Walter Onnoghen, and the President of the Court of Appeal, Justice Zainab Bulkachuwa, have called on AMCON to leverage the Alternative Dispute Resolution mechanism now available for use in courts in the country.

Onnoghen and Bulkachuwa spoke in Abuja on Monday at an interactive session between justices of Supreme Court, Court of Appeal, AMCON and the National Judicial Institute. The discussion, which centred on how AMCON could effectively recover its outstanding N5.4tn debt, was themed: ‘Strengthening AMCON Recovery Drive.’

Onnoghen, in his opening address at the event, said the judiciary must be aware of the daunting task before AMCON, which required judicial support on the one hand, and for the corporation to think outside the box and come up with innovative ways of accomplishing its mission within the ambit of the law.

According to him, that is the only way AMCON will recover as much debts as possible within its defined lifespan.

“It is for this reason that I will encourage the use of the ADR, as part of the mechanism put in place to resolve asset management-related disputes in our courts,” he stated.

The CJN, who insisted that it was in the interest of the country that AMCON succeeded in its assignment, added, “Certainly, judicial time and capacity are scarce public resources; as such, repeated delays constitute waste of these precious resources. A better understanding of the current trends in this area of the law will go a long way in curbing delays and waste of judicial time and resources, thereby helping AMCON in fulfilling its mandate.

“The judiciary will continue to do its best to ensure that judges remain conversant with the AMCON regime towards engendering efficiency, uniformity and improvement in the quality of judicial services in our courts.”

Bulkachuwa expressed happiness for the interaction, which she said held the key to fast-tract debt recovery activities of AMCON and the eventual industrialisation of the Nigerian economy.

She stated, “As I congratulate the honourable and distinguished participants, I urge you to consider leveraging the Alternative Dispute Resolution infrastructure that is now available in ours courts towards your efforts on speedy recovery.”

“In fact, the Chief Justice of Nigeria has consistently encouraged the utility of the ADR in view of the delays in adjudication caused by the density of cases in the dockets of the trial and appellate courts.”

She added, “The judiciary has been playing its constitutional role through dynamic and proactive but fair and objective interpretation and enforcement of the AMCON Act by expeditious determination of AMCON cases and the enactment of AMCON Practice Directions both at the Federal High Court and the Court of Appeal as well as the Supreme Court.

“I am aware that the CJN is also considering an exclusive Practice Direction for AMCON at the Supreme Court. In the meantime, I am also aware that the CJN has advised AMCON lawyers to adopt the fast-track window for all AMCON appeals at the Supreme Court. In the Court of Appeal, I have since issued a circular directing the expeditious disposition of all AMCON appeals and I am aware that the circular is being effectively implemented.”

The Managing Director, AMCON, Ahmed Kuru, had earlier reminded the justices that the corporation currently had a lot of pending cases at the Federal High Court because its obligors were deliberately raising issues that would cause delay in justice, believing that by the time AMCON started addressing the substantive matter, things would have changed.

He stated, “AMCON currently has over 3,000 cases pending at the Federal High Court. Given the litigious tendency of our obligors, we anticipate that more than 50 per cent of the cases will proceed to the Court of Appeal and eventually the Supreme Court.

“We hope that the special Practice Direction issued by the President of the Court of Appeal will be very instrumental to speedy determination of the eventual appeals. The Practice Direction prescribed three months for concluding all AMCON matters. If the national assignment of recovering over N5tn of bad debts will be achieved, the Practice Direction needs to be strengthened and encouraged.”

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

Continue Reading
Comments

Banking Sector

Guaranty Trust Holding Plans N500 Billion Share Offering

Published

on

Guaranty Trust Holding Company Plc (GTCOPLC) has announced plans to raise up to N500 billion through a new share offering, according to a preliminary prospectus filed with the Securities and Exchange Commission (SEC).

This move aims to support the company’s ambitious growth and expansion strategy.

GTCOPLC’s proposed offering will involve the subscription of ordinary shares of 50 kobo each, although the exact number of shares and the price range are yet to be determined.

The offering includes a concurrent filing of a preliminary universal shelf registration statement, allowing the company to issue various types of securities, potentially raising up to $750 million in multiple currencies.

Purpose of the Offering

The funds raised from this offering will primarily be allocated towards:

  1. Business Growth and Expansion: GTCOPLC plans to invest significantly in technology infrastructure to enhance its current operations. Additionally, the company intends to establish new subsidiaries and make selective acquisitions of non-banking businesses.
  2. Recapitalization of Guaranty Trust Bank Limited: Part of the proceeds will be used to strengthen the capital base of its banking subsidiary.

Target Investors and Structure

The offering is structured to attract both institutional and retail investors. It will be divided into two main tranches:

  • Nigerian Tranche: An institutional and retail offering aimed at eligible investors within Nigeria.
  • International Tranche: A private placement targeting qualified institutional buyers outside Nigeria.

Listing and Trading

GTCOPLC has also filed an application with the Nigerian Exchange Limited (NGX) to list and admit the new ordinary shares for trading on the NGX Official List.

The company anticipates opening the offering by July 2024.

Financial Strategy

The universal shelf registration will enable GTCOPLC to issue a variety of securities over time, with a total value of up to $750 million (or its equivalent in Nigerian Naira).

This approach provides the company with flexibility to raise capital in different markets during the programme’s validity period. The current proposed offering will be the first issuance under this new programme.

Regulatory Compliance

GTCOPLC emphasized that this notice does not constitute an offer of securities for sale in the United States or to U.S. persons, as defined under Regulation S of the U.S. Securities Act of 1933.

The offered shares have not been, and will not be, registered under the U.S. Securities Act or any state securities laws, and cannot be sold in the United States without proper registration or an applicable exemption.

Continue Reading

Loans

China Maintains One-Year Policy Loan Rate at 2.5%, Avoids Excessive Liquidity

Published

on

growth

China’s central bank, the People’s Bank of China (PBOC), has decided to keep the key interest rate steady for the tenth consecutive month.

On Monday, the PBOC announced that the rate on one-year policy loans, known as the medium-term lending facility (MLF), will remain at 2.5%.

This decision aligns with the forecasts of a Bloomberg survey, reflecting the bank’s priority to maintain financial stability amid a fragile economic recovery.

The central bank also took measures to manage liquidity, withdrawing a net 55 billion yuan ($7.6 billion) from the banking system.

This action aims to prevent excessive liquidity, which could lead to further depreciation of the yuan. By maintaining a cautious stance on monetary easing, the PBOC underscores its focus on currency stability over lowering borrowing costs.

This move comes as China grapples with mixed economic signals. While exports exceeded expectations in May, inflation rose less than anticipated, and factory activity saw an unexpected contraction according to an official survey.

Despite these challenges, the PBOC’s restraint reflects a strategic choice to prioritize the strength of the yuan, even as calls for a rate cut grow louder.

Last week, the onshore yuan weakened to its lowest level since November, driven by a wide interest rate gap between the US and China.

The PBOC’s decision to hold rates steady is seen as an effort to prevent further devaluation of the yuan, which remains a “powerful currency” according to financial authorities.

Sufficient market liquidity has also influenced the central bank’s decision to refrain from outright rate cuts.

This is evidenced by the declining borrowing costs of popular debt instruments, such as one-year AAA-rated negotiable certificates of deposits, which have dropped to around 2%, compared to the MLF’s 2.5%.

The influx of funds from savings to wealth management products and other higher-yielding assets has bolstered the financial system’s liquidity, allowing the PBOC to adopt a more conservative stance.

China’s economy has experienced a patchy recovery, with government bond sales accelerating to boost infrastructure spending amidst a prolonged property slump.

Despite these efforts, the central bank remains cautious, opting for stability over aggressive monetary easing.

Continue Reading

Banking Sector

Fidelity Bank Launches N127.1bn Public Offer and Rights Issue on June 20

Published

on

fidelity bank - Investors King

Fidelity Bank Plc, Nigeria’s sixth-largest bank, is set to open its public offer and rights issue to investors on Thursday, June 20, 2024.

In preparation for this significant financial event, Fidelity Bank will host a “Facts Behind the Offer” presentation at the Nigerian Exchange Group (NGX) on the same day.

This presentation is expected to provide detailed insights into the bank’s strategy and the opportunities presented by the public offer and rights issue.

Under the rights issue, Fidelity Bank will offer 3.2 billion ordinary shares of 50 kobo each at N9.25 per share. These shares will be available to existing shareholders in the proportion of 1 new ordinary share for every 10 ordinary shares held as of January 5, 2024.

In addition to the rights issue, the bank will also offer 10 billion ordinary shares of 50 kobo each to the general investing public at N9.75 per share. This dual approach is part of the bank’s comprehensive strategy to raise a total of up to N127.1 billion.

The acceptance and application period for the rights issue and public offer will commence on Thursday, June 20, and close on Monday, July 29, 2024.

This timeline provides investors ample opportunity to participate in the bank’s capital expansion.

Fidelity Bank has engaged Stanbic IBTC Capital as the lead issuing house for the combined offer. The joint issuing houses include Iron Global Markets Limited, Cowry Asset Management Limited, Afrinvest Capital Limited, FSL Securities Limited, Futureview Financial Services Limited, Iroko Capital Market Advisory Limited, Kairos Capital Limited, and Planet Capital Limited.

These firms will play a crucial role in managing the offer and ensuring its success.

The bank’s initiative to raise N127.1 billion is seen as a strategic move to bolster its capital base and ensure compliance with the CBN’s revised capital requirements, which were introduced on March 28, 2024.

This capital raise is expected to enhance the bank’s capacity to support its growing customer base and expand its operations across Nigeria and beyond.

In recent years, Fidelity Bank has demonstrated robust financial performance and growth, positioning itself as a key player in Nigeria’s banking sector.

The successful completion of this public offer and rights issue will further solidify its standing and enable it to pursue new opportunities in the competitive financial landscape.

Investors and stakeholders are keenly anticipating the outcome of this capital-raising exercise, which is poised to mark a significant milestone in Fidelity Bank’s journey toward sustained growth and stability.

Continue Reading
Advertisement




Advertisement
Advertisement
Advertisement

Trending