THISDAY reports Treasury Bills rates may likely be lower as a result of the Asset Management Corporation of Nigeria (AMCON)’s redemption of N2 trillion bonds with T-bills this month. They quoted Analysts at Cordros Capital Limited who gave this indication in their monthly report obtained by THISDAY yesterday.
“We expect short term rates to edge lower because AMCON has indicated its intent to redeem N2 trillion worth of bonds with T-bills rather than cash. And these T-bills are expected to be issued below current market rates. Also, a high volume of open market operations (OMO) redemptions are expected to hit the market in December and January. This is also likely to push rates down,”
AMCON last week notified the NSE of its intention to redeem its N1.699 trillion zero coupon Series 1 Bond on December 30, 2013. The bad debt bank has bonds with a face value of about N5.7 trillion, with the Central Bank of Nigeria (CBN) holding about 63 per cent or N3.6 trillion. The balance is held by public and private investors.
In a notification to the Nigerian Stock Exchange (NSE), through Chapel Hill Advisory Partners Limited and Stanbic IBTC Capital Limited, AMCON said the N1.699 trillion zero coupon Series 1 bonds due December 31, 2013 under the will be redeemed at par value on December 30, 2013.