Lagos -- FinBank has received N44 billion worth of bonds from Asset Management Company of Nigeria (AMCON) in the first phase of the exchange of non-performing assets between it and the and Nigerian banks.

Earlier reports showed that Oceanic bank had received N200 billion, Intercontinental Bank N148 billion and Union Bank N239 billion from AMCON.

According to Finbank, in terms of sheer volume, it had one of the lowest non-performing loan portfolio among the nine rescued banks.

The bank said it intended to participate in the second round of the non-performing loan swap, scheduled to take place soon.

AMCON had in December issued zero-coupon consideration bonds valued at N1.03 trillion in exchange for non-performing loans worth N2.2. trillion. The bonds have a yield of 10.25 per cent and will mature on December 31, 2013.

The liquidity position of banks had been buoyed by the AMCON inflow, which also had the effect of moderating rates in the interbank market.

The Central Bank of Nigeria (CBN) and the 24 deposit money banks in the country last week signed a Memorandum of Understanding (MOU) on the establishment of a Banking Sector Resolution Cost Fund (a Sinking Fund) to meet any shortfalls that may arise from the management and realization of the eligible bank assets to be acquired by AMCON.

The arrangement required the CBN to contribute N50 billion to the fund every year over the next 10 years, while each bank will contribute an annual amount equivalent to 0.3 per cent of its audited prior-year total assets.