Nigerian Mortgage Refinance Company, NMRC, PLC has listed Series 3 ₦10 billion Fixed Rate Bond under it ₦440 billion Bond Issuance Programme on FMDQ Securities Exchange’s platform.
This is following the approval and due diligence of FMDQ’s Board Listings and Markets Committee.
A statement by the exchange on Wednesday stated that the listing was in addition to other corporate securities issued on the FMDQ Exchange Platform this year.
In view of the sustained disruptions occasioned by the impact of the COVID-19 pandemic to businesses and economies alike,
Considering the disruptions caused by the impact of the COVID-19, analysts at the exchange said the Nigerian capital market had continued to provide the relief for corporate entities looking to raise funds to meet shortfalls in their working capital and capital expenditures.
They noted that the Nigerian real estate sector had been one of the worst-hit sectors and finance had become a core challenge for property developers and prospective homeowners.
FMDQ described NMRC as a private sector-driven mortgage refinancing company with the purpose of promoting home ownership for Nigerians.
Commenting on the listing, the Managing Director of NMRC, Mr Kehinde Ogundimu, said, “The proceeds of the issue would be used to refinance existing and conforming mortgage loans.
He added that the issuance also demonstrated 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.
Ogundimu stated that the prevailing interest rate regime would reduce the rate at which the primary mortgage institutions lend to their customers and in the long-term, substantially drive reduction in mortgage interest rates as well as translate to cost reductions in housing construction finance going forward.
Sponsors of the transaction on the Exchange, DLM Capital Group said the success of the deal indicated that investors had an appetite for long tenured assets and highlights their confidence in NMRC’s operating model.
“We expect the impact on the mortgage industry to be far reaching, making home-ownership much more accessible to the average individual,” the company said.