NMRC: As part of its efforts to provide additional liquidity to the country’s mortgage market and give more Nigerians the opportunity to own homes, Nigeria Mortgage Refinance Company Plc (NMRC) has announced the completion of its ₦10 billion 7.20% series 3 fixed rate bonds due in 2027, under its ₦440 Billion Medium Term Note Programme.

The bond which was facilitated by DLM Capital Group as the Financial Adviser and Issuing House was well received by investors and was subscribed 3.28 times the projected amount. This has been described to be the highest subscription for a Nigerian bond so far.

Mr. Kehinde Ogundimu, the Managing Director/CEO of NMRC at the bond signing ceremony held in Lagos explained that “This series 3 bond issuance goes to further reinforce our commitment to encourage, promote and facilitate home-ownership in Nigeria. This issuance gives an opportunity for people like you and I to take mortgage loans at an affordable rate and buy houses”.

Mr. Ogundimu also stated that “One of the biggest challenges we have in the mortgage industry is affordability, but with this rate at 7.20%, I will expect that from this issuance, there will be a substantial decrease in the mortgage rate to the ultimate mortgagors going forward”.

“Other things like cost of houses is also expected to drop as this interest rate will offer some cost reduction to developers, unlike in the past where they had to borrow money for short periods at over 30% interest rate” he added.

DLM Capital Group, through its subsidiary; DLM Advisory, played the role of Financial Adviser and Issuing house for the bond issuance. They also expressed their satisfaction with the success of the bond and were optimistic that it would go a long way in helping the average Nigerian access mortgage loans.

Source: Business Insider Africa