Capital market: Issuing houses meet regulators over debt overhang

BY MICHAEL EBOH

The Association of Issuing Houses of Nigeria, AIHN, said it has entered into discussions with regulators in the capital and financial markets on ways to reducing the huge debt burden of capital market operators.

Speaking at its Annual General Meeting in Lagos, Mr. Bolaji Balogun, Chairman, AIHN, said the association has made significant progress in the deliberations and is confident that within the next couple of weeks, the regulators will make definitive pronouncements geared towards addressing the huge debt overhang borne by capital market operators.

According to him, the Association has consistently continued to play a vital role in ensuring a conducive environment for the investment banking business and the issuance of different asset classes in the Nigerian capital market.

He said, “some of our initiatives this year include, working with government, regulators and other stakeholders to get capital market issues on the front burner and we are delighted with the support we have received from the Securities and Exchange Commission, SEC, Nigerian Stock Exchange, NSE, Central Bank of Nigeria, CBN, Debt Management Office, DMO and the Asset Management Company of Nigeria, AMCON.

“We have also worked consistently supporting other trade groups, most notably, the brokerage community in lobbying for the acceptance of a strategy to fast track market recovery and long term sustainability in the market.

He said the association is aware of the impact of the policies of the CBN, SEC and Finance ministry on the capital market; hence it is working towards constantly engaging key policy makers, so as to ensure that their policies do not affect the market negatively.

Balogun disclosed that it is also partnering with the Association of Stockbroking Houses of Nigeria, ASHON and the Chartered Institute of Stockbrokers, CIS, in promoting a number of capital market initiatives.