The Nigeria Mortgage Refinance Company (NMRC), a private sector-driven mortgage refinancing company dedicated to increasing home ownership for Nigerians while deepening the primary and secondary mortgage markets, has raised $200 million in funding.
The Fund comes from the United States International Development Finance Corporation (IDFC) for Affordable Mortgage Financing and is part of a $228 million Blended Financing Transaction arranged by MiDA Advisors and Stanbic IBTC Capital, a member of the Standard Bank Group.
NMRC formed this cooperation to fill a liquidity shortfall in Nigeria’s home finance industry.
It also collaborated with MiDA Advisors, based in the United States, and Standard Bank Group, based in Johannesburg, to develop a blended finance solution for scaling up long-term funding.
The transaction involved a $200 million loan from the United States International Development Finance Corporation (DFC) and $28 million in financing from local financial markets, for a total of $228 million in long-term blended financing.
The deal and strategic relationship with DFC will provide the necessary liquidity to help the country bridge the housing deficit while promoting more equal economic growth and development.
Furthermore, through on-lending to major lending institutions commercial banks and principal mortgage banks the facility will be made available to qualified mortgage borrowers throughout Nigeria for the refinancing or pre-financing of eligible mortgage loans.The National Bureau of Statistics (NBS) reports that 63% of Nigerians live in multidimensional poverty.
As a result, it is anticipated that the financing will give low-income workers, women who face significant obstacles in their quest to become property owners, and Nigeria’s sizable informal sector access to credit facilities.
Specifically, about 20% of the loan will be dedicated to informal and low-income borrowers, with an estimated 40% of the mortgages to be refinanced or pre-financed going to women as borrowers or co-borrowers.
In response to the loan clearance, NMRC’s Managing Director and Chief Executive Officer, Mr. Kehinde Ogundimu, expressed gratitude to DFC, stating that it is obvious indication of NMRC’s role as a vital institution in the housing ecosystem.
“This deal will undoubtedly strengthen our efforts to provide affordable long-term housing finance in a way that will benefit the entire sector. It demonstrates that DFC, as well as other local and foreign financial institutions, have a high level of confidence in our ability to manage long-term facilities with a real 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 achieve their homeownership goals,” he stated.
Mr. Aymeric Saha, Chief Executive Officer of MiDA Advisors, stated, “We are very pleased to partner with NMRC and Standard Bank to arrange another transformative housing finance solution that will impact over 6,000 households in Nigeria.
“ Through this transaction, we once again demonstrate the power of collaboration with Africa’s best enterprises, such as NMRC, to address the region’s social infrastructure financing needs.”
“This transaction demonstrates the bank’s commitment to driving Africa’s socio-economic development through the facilitation of sustainable investment on the continent,” stated Mr. Luvuyo Masinda, Chief Executive Officer of Standard Bank Group in charge of Corporate and Investment Banking.
We continue to provide creative solutions to solve the demands and difficulties that the people of Africa face. This acquisition is extremely remarkable and has a good influence on both Nigeria and the continent.
The CEO of Stanbic IBTC Capital Limited, a wholly owned subsidiary of Stanbic IBTC Holdings PLC, Oladele Sotubo, also provided commentary on the deal, saying, “Stanbic IBTC Capital is delighted to have worked alongside MiDA Advisors to facilitate this landmark financing aimed towards enhancing accessibility and affordability of mortgages in Nigeria.
” The goals of the deal align well with the Standard Bank Group’s mission to promote Africa’s development, and we are incredibly honoured to be involved in it.
In Essence
The funding is intended to enhance access to mortgage financing, particularly for low-income earners and women, who face substantial barriers in property ownership. By targeting these demographics, NMRC is promoting more equitable homeownership opportunities.
The partnership with MiDA Advisors and Stanbic IBTC Capital illustrates a strategic approach to blending financing sources.
This cooperation not only brings in substantial foreign investment but also mobilizes local capital, enhancing the overall effectiveness of the funding.
