FMDQ Securities Exchange Limited has approved the listing of the Nigerian Mortgage Refinance Company PLC (NMRC), Series 3 N10billion fixed rate bond under its N440 billion bond issuance programme on its platform.
The listing comes a few days after Total Nigeria Plc, Valency Agro Nigeria Limited, Mixta Real Estate Plc, and Flour Mills of Nigeria Plc’s bonds were listed on the platform.
According to the exchange, the Nigerian capital market has continued to provide the much-needed succour for corporate entities looking to raise funds and meet shortfalls in their working capital needs as well as capital expenditures in view of the sustained disruptions occasioned by the impact of the COVID-19 pandemic on businesses.
It explained that the real estate sector has evidently been one of the worst-hit sectors with financing remaining a core challenge for property developers and prospective homeowners.
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.
The Managing Director of NMRC, Kehinde Ogundimu, said: “The proceeds of the issue would be used to refinance existing and conforming mortgage loans. 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.”
Ogundimu said the prevailing interest rate regime would reduce the rate at which the primary mortgage institutions on-lend to their customers, and in the long-term substantially drive reduction in mortgage interest rates as well as translate to cost cutting in housing construction finance going forward.
Also speaking, DLM Capital Group, sponsors of the transaction, said: “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.
“These recent admissions to FMDQ Exchange’s platform are reflective of the potential of the Nigerian DCM and the commendable level of confidence demonstrated by both issuers and investors in the market.”
The group also validated the efficient processes and integrated systems through which FMDQ Holdings Plc, through its wholly-owned subsidiaries– FMDQ Exchange, FMDQ Clear Limited, FMDQ Depository Limited, and FMDQ Private Markets Limited- have sustained uninterrupted service delivery to the market and its diverse stakeholders.
FMDQ said these securities shall be availed the benefits of the value-driven listings and quotations service on the Exchange, including global visibility through its website and systems, liquidity credible price formation and continuous information disclosure to protect investors’ interest, amongst others.
“In keeping with its commitment to the development of the market, FMDQ Exchange shall sustain its efforts in supporting issuers with tailored financing options to enable them achieve their strategic objectives, deepen and effectively position the Nigerian DCM for growth, in support of the realisation of a globally competitive and vibrant economy.”