Nigeria Mortgage Refinance Company (NMRC) has announced the completion of an N11 billion 13.8 percent Series 2 Bond Issuance under its N440 billion Medium Term Note Programme.
According to the Managing Director, NMRC, Kehinde Ogundimu, the net proceeds of the exercise will be used to refinance eligible mortgage loans originated by the participating mortgage lending banks and further boost liquidity to the country’s mortgage market.
According to the Nations, he further revealed that the Series 2 Bond was subscribed by over 200 percent noting that the bonds were subscribed to by domestic investors with the Pension Fund Administrators (PFAs) representing over 70 percent of the investors.
The bonds were priced at a spread of 0.74% above the interpolated 15-year FGN yield of 13.06 percent as at the opening of book building.
In his words:
“The bond issuance reinforces our commitment to encourage and promote homeownership in Nigeria by linking the capital markets with the housing sector and establishing an operating and viable secondary mortgage market to support the primary mortgage market.”
In 2015 the company raised N6 billion in new equity capital as part of a N28.5 billion equity issuance programme, the proceeds of which were deployed towards refinancing legacy mortgage loan portfolios of the participating eligible member-mortgage lending banks.
About Nigeria Mortgage Refinance Company
In 2013 the apex bank approved a draft on a Regulatory and Supervisory framework for the establishment of Mortgage Refinancing Companies in Nigeria (MRC).
NMRC was established to bridge the funding cost of residential mortgages and promote the availability as well as the affordability of good housing to Nigerians by providing increased liquidity in the mortgage market through the mortgage and commercial banks.
The company is driven by substantial private sector participation consisting of commercial
banks, primary mortgage banks, insurance companies, private equity investors and
international financial institutions through the Ministry of Finance with the public purpose of
developing primary and secondary mortgage markets, and raising long-term funds from both domestic capital market and foreign markets to provide accessible and affordable housing to Nigerians in Nigeria.