NMRC issue bonds by aggregating mortgage portfolios of commercial banks and mortgage lending institution for investors in the Capital Market to buy through its N400bn FGN guaranteed Bond Issuance Program. Through this NMRC raises long-term funds to boost liquidity in the mortgage market thereby empowering commercial banks and mortgage lending institutions to provide longer term loans to potential homeowners.
This aligns with NMRC’s business mandate, which is to promote access to affordable housing finance in Nigeria by linking the capital market with the housing sector and establishing an operational and viable secondary mortgage market.
Since NMRC commenced operations, eight years ago, we have successfully tapped the Nigerian Capital Market on three occasions to raise finance for the mortgage market.
First, in July 2015, NMRC successfully issued a 15-year N8 billion Series 1 Bond with coupon rate of 14.9% under its N440billion Medium Term Note Programme. By this act, NMRC made history as the first mortgage refinance facility in Africa to issue bonds to finance its operations. NMRC deployed the funds raised from the bond issue to the refinancing of the mortgage portfolios of its member banks.
In May 2018, successfully completed an N11billion Series II Bond Issuance. The order book was subscribed by over 200 percent. Net proceeds of the bond issue will again be deployed to the refinancing of conforming mortgage portfolios.
To further boost liquidity in the country’s mortgage market, NMRC again in November 2020, successfully issued a N10 billion Series III Bond with a coupon rate of 7.2%; oversubscribed by 328%. As of December 31, 2021 NMRC had refinanced mortgage to the tune of N30 billion.