Ecobank Denies Reasons for SEC’s Suspension

Ecobank Nigeria has responded to its suspension by the Securities and Exchange Commission (SEC) as a receiving banker and all other capital market activities.

A statement released by the bank on Thursday said it did not connive with Arian Capital or any other party to convert shares into a margin loan facility as its being alleged.
The bank explained that in 2007, it granted a margin loan facility to Arian Capital management limited for on-lending, secured by quoted shares.

According to the bank, the margin loan to Arian Capital became delinquent and the debt was sold to AMCON together with the collateral.

Avil services had complained to the SEC against Arian Capital for the return of its shares.
An investigation by the SEC’s revealed that Avil services signed an agreement with Arian Capital that its shares would be used as collateral with eco- bank, but could not provide the details.

As a result, the regulator suspended Ecobank Nigeria from its role as receiving bank in respect of any other capital market activity or in any other capacity.
 
Ecobank has until April the 3rd to replace the shares worth N11million.