LIVE UPDATES
The Nigeria Mortgage Refinance Company Plc (NMRC) has secured $228 million in affordable mortgage financing for vulnerable earners and borrowers.
This was disclosed in a statement on its X page, on Thursday, September 26, 2024.
The company revealed that the funding resulted from a partnership involving the United States International Development Finance Corporation (DFC) for Affordable Mortgage Financing, NMRC, as part of a $228 million blended financing Transaction arranged by MiDA Advisors and Stanbic IBTC Capital, a member of the Standard Bank Group.
It added that the funding will help address the liquidity gap in Nigeria’s mortgage finance market and co-create a blended finance solution to mobilize long-term financing at scale.
According to the statement, the transaction includes a $200 million loan from the U.S. International Development Finance Corporation (DFC) and $28 million in financing sourced from local financial markets, securing a total of $228 million in long-term blended financing for NMRC.
The company said the aim is to provide the necessary liquidity to support the country’s quest to bridge the housing deficit while 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 to qualifying mortgage borrowers across Nigeria.
“Therefore, the financing is expected to provide vulnerable segments of the population with access to credit facilities, including Nigeria’s large informal sector, low-income earners, and women who face significant challenges in their quest for 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,” the statement partially read.
Reacting to the loan approval, the Managing Director and Chief Executive Officer of NMRC, Mr. Kehinde Ogundimu, expressed appreciation to DFC for its positive role within Nigeria’s housing ecosystem.
“This transaction will certainly enhance our efforts to provide affordable long-term housing finance in a way that will impact the overall sector. It shows that DFC, and indeed other local and international financing institutions, have a great deal of trust in our capacity to manage long-term facilities that will make a tangible impact on the lives of Nigerians.
