NMRC secures $228m for affordable mortgage financing

• Published On: 26 September 2024 at 20:16

The Nigeria Mortgage Refinance Company Plc has secured $228 million in affordable mortgage financing to help vulnerable earners and borrowers.

This was disclosed in a statement issued by NMRC on Thursday through its X account.

MiDA Advisors and Stanbic IBTC Capital, a Standard Bank Group member, facilitated the funding, which is part of a partnership with the United States International Development Finance Corporation.

The funding was obtained through a partnership between the US International Development Finance Corporation (DFC) and NMRC as part of a $228 million blended financing transaction.

This initiative was organized by MiDA Advisors and Stanbic IBTC Capital, a Standard Bank Group member.

The funding will help address the liquidity gap in Nigeria's mortgage finance market, with the goal of co-creating a blended finance solution that mobilizes large amounts of long-term financing.

According to the statement, the transaction includes a $200 million loan from the US International Development Finance Corporation (DFC) and $28 million from local financial markets, for a total of $228 million in long-term blended financing for NMRC.

The company stated that it intends to provide the necessary liquidity to help bridge Nigeria's housing deficit while also 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 for qualified mortgage borrowers in Nigeria.

"As a result, the financing is expected to provide credit facilities to vulnerable segments of the population, such as Nigeria's large informal sector, low-income earners, and women who face significant barriers to 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," a portion of the statement read.

Mr. Kehinde Ogundimu, Managing Director and Chief Executive Officer of NMRC, praised DFC for its positive contributions to Nigeria's housing ecosystem.

"This transaction will undoubtedly strengthen our efforts to provide affordable long-term housing financing in a way that will benefit the entire sector. It demonstrates that DFC, as well as other local and international financing institutions, have a high level of confidence in our ability to manage long-term facilities with a tangible impact on Nigerians' lives.

"The emphasis on low-income earners, the informal sector, and women reflects the direction of our efforts. "As an institution, we are committed to promoting equitable access to housing credit facilities, allowing vulnerable Nigerians to realize their homeownership goals," he said.

MiDA Advisors CEO, Mr. Aymeric Saha, expressed satisfaction in collaborating with NMRC and Standard Bank to arrange a transformative housing finance solution that will benefit over 6,000 Nigerian households.

Saha explained that the transaction demonstrates the effectiveness of collaboration with NMRC in addressing the region's social infrastructure financing needs.