The Nigeria Mortgage Refinance Company Plc (NMRC) has announced that it has secured $228 million in affordable mortgage financing for vulnerable earners and borrowers.
This was disclosed in a statement on its X page, on Thursday, September 26, 2024.
The company revealed that the funding resulted from a partnership involving the United States International Development Finance Corporation (DFC) for Affordable Mortgage Financing, NMRC, as part of a $228 million blended financing Transaction arranged by MiDA Advisors and Stanbic IBTC Capital, a member of the Standard Bank Group.
It added that the funding will help address the liquidity gap in Nigeria’s mortgage finance market and co-create a blended finance solution to mobilize long-term financing at scale.
Details of the Funding
According to the statement, the transaction includes a $200 million loan from the U.S. International Development Finance Corporation (DFC) and $28 million in financing sourced from local financial markets, securing a total of $228 million in long-term blended financing for NMRC.
The company said the aim is to provide the necessary liquidity to support the country’s quest to bridge the housing deficit while promoting more equitable economic growth and development.
“The facility will be disbursed through on-lending to primary lending institutions, including commercial banks and primary mortgage banks, to refinance or pre-finance eligible mortgage loans to qualifying mortgage borrowers across Nigeria.
“Therefore, the financing is expected to provide vulnerable segments of the population with access to credit facilities, including Nigeria’s large informal sector, low-income earners, and women who face significant challenges in their quest for homeownership.
“Specifically, approximately 20% of the loan will be allocated to informal and low-income borrowers, while an estimated 40% of the mortgages to be refinanced or pre-financed will be those underwritten to women as borrowers or co-borrowers,” the statement partially read.
More Insights
Reacting to the loan approval, the Managing Director and Chief Executive Officer of NMRC, Mr. Kehinde Ogundimu, expressed appreciation to DFC for its positive role within Nigeria’s housing ecosystem.
“This transaction will certainly enhance our efforts to provide affordable long-term housing finance in a way that will impact the overall sector. It shows that DFC, and indeed other local and international financing institutions, have a great deal of trust in our capacity to manage long-term facilities that will make a tangible impact on the lives of Nigerians.
“The keen focus on low-income earners, the informal sector, and women reflects the direction of our efforts. As an institution, we are committed to driving equitable access to housing credit facilities, thus enabling vulnerable Nigerians to achieve their homeownership dreams,” he added.
MiDA Advisors Chief Executive Officer, Mr. Aymeric Saha, stated that they are pleased to partner with NMRC and Standard Bank to arrange another transformative housing finance solution that will impact over 6,000 households in Nigeria.
Saha explained that the transaction demonstrates the power of partnerships with NMRC, to tackle social infrastructure financing needs in the region.
Mr. Luvuyo Masinda, Chief Executive of Corporate and Investment Banking at Standard Bank Group, stated, “This transaction demonstrates the bank’s commitment to driving Africa’s socio-economic development through the facilitation of sustainable investment on the continent.
“We understand the needs and challenges of Africa’s people and continue to deliver innovative solutions to address these. This is truly an incredible transaction with a positive impact on Nigeria and the continent.”
Oladele Sotubo, Chief Executive of Stanbic IBTC Capital Limited, the investment banking subsidiary of Stanbic IBTC Holdings PLC, said, “Stanbic IBTC Capital is delighted to have worked alongside MiDA Advisors to facilitate this landmark financing aimed at enhancing accessibility and affordability of mortgages in Nigeria. The objectives of the transaction align perfectly with the Standard Bank Group’s mission to drive Africa’s growth, and we are extremely proud to be part of this initiative.”
