FMDQ Securities Exchange Limited (“FMDQ Exchange” or “the Exchange”), following the due diligence of its board listings and markets committee has approved the listing of the Nigerian Mortgage Refinance Company PLC (“NMRC”) series 3 ₦10billion Fixed Rate Bond, under its ₦440billion bond issuance programme on its platform.
The listing joins a host of other corporate securities issued on the FMDQ Exchange Platform to kick off the year 2021 in addition to Total Nigeria PLC, Valency Agro Nig. Ltd., Mixta Real Estate PLC and Flour Mills of Nigeria PLC.
In view of the sustained disruptions occasioned by the impact of the COVID-19 pandemic to businesses and economies alike, the Nigerian capital market has continued to provide the much-needed succor for corporate entities looking to raise funds to meet shortfalls in their working capital needs as well as capital expenditures.
The Nigerian real estate sector has evidently been one of the worst-hit sectors with financing remaining a core challenge for property developers and prospective homeowners.
The NMRC is a private sector-driven mortgage refinancing company with the purpose of promoting home ownership for Nigerians while deepening the primary and secondary mortgage markets by raising long-term funds from the capital market, to enhance access to affordable housing finance in Nigeria.
Managing Director of NMRC, Mr. Kehinde Ogundimu, said the proceeds of the issue would be used to refinance existing and conforming mortgage loans, adding 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 further stated that the prevailing interest rate regime will reduce the rate at which the primary mortgage institutions onlend 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.
According to DLM Capital Group “We are proud to have acted as Issuing House and Financial Advisors on the NMRC Series 3 Bond issuance. The success of the deal indicates that investors have 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”.