Question: Why did the CBN feel the need to issue an approval in-principle? It was probably because the shares where to be converted to preference shares. Preference shares are shares that still feels like debt. When you think Preference shares, think “Hybrid”. 😀 #MTNRefund
Now, this kind of conversion is not unusual. But the CBN obviously saw enough in the MTN board resolution authorizing the conversion to make them want to wait for evidence of implementation of an item on that resolution before it gave its final approval. #MTNRefund
6. This is where it gets murky. The CBN claims that in spite of the non fulfillment of the conditions it gave, MTN went ahead to convert the loans to preference shares and SCB issued CCI’s in respect of the ‘illegal” conversion. Note the use of the word "illegal" #MTNRefund
7. Sometime in 2009, the CBN queried SCB on the CCI issued on this “illegal Conversion”. SCB in a reply dated Dec 10 2009, acknowledged to the CBN that it was an “unintended omission”. Nonetheless, on account of this CCI, MTN was able to remit $8Bn between 2007 - 2015. #MTNRefund
See below for the concluding part of the thread
