NMRC Issues ₦10 Billion Naira Series 3 Mortgage Bond.
November 3rd, 2020, Lagos, Nigeria.
In continuation of its efforts to boost liquidity in the mortgage industry and improve access to affordable homeownership, the Nigeria Mortgage Refinance Company Plc (NMRC) has successfully raised N10Bn from the Debt Capital Markets. The bond issue, which was coordinated by DLM Capital Group, was oversubscribed by a record 328%.
The Managing Director of NMRC, Mr. Kehinde Ogundimu, said, during the bond signing ceremony, that the proceeds of the issue would be used to refinance existing and conforming mortgage loans, Mr. Ogundimu added that the issuance also demonstrates NMRC’s commitment to the provision of affordable liquidity to the mortgage market by attracting long-term funding into the housing finance industry from the capital markets.
Mr. Ogundimu stated that the prevailing interest rate regime will reduce the rate at which the primary mortgage institutions on-lend to their customers and in the long-term, substantially drive a reduction in mortgage interest rates as well as translate to cost reductions in housing construction finance going forward.
Mr. Ogundimu also noted that the improvement in mortgage rates would drive efficiency and significant improvements in available options for clients who are desirous of taking advantage of prevailing lower rates.
NMRC is set to deploy the ₦10Bn fixed-income bond, which has a seven-year tenor towards refinancing mortgage loan portfolios of commercial and mortgage banks. The 2020 Bond issuance comes under NMRC’s ₦440Bn Medium Term Note Programme and follows its 2018 ₦11 billion Series 2 Bond and its ₦8Bn Series 1 Bond issued in 2015.
Mr Kehinde Ogundimu
M.D CEO, NMRC