FMDQ Securities Exchange Limited (FMDQ Exchange), on Wednesday, announced the approval to list the Nigerian Mortgage Refinance Company Plc (NMRC) Series 3 ₦10bn Fixed Rate Bond under its ₦440bn Bond Issuance Programme on its platform.
The listing, which followed the due diligence conducted by the exchange’s Board Listings and Markets Committee, joins a host of other corporate securities issued on the FMDQ Exchange Platform to kick off the year 2021.
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.
A statement quoted the Managing Director of NMRC, Kehinde Ogundimu, as saying “the proceeds of the issue would be used to refinance existing and conforming mortgage loans.”
He added 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.
Ogundimu further stated that “the prevailing interest rate regime will reduce the rate at which 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 reductions in housing construction finance going forward.”
The statement also quoted the management of DLM Capital Group, Issuing House and Financial Advisors on the NMRC Series 3 Bond issuance, as saying “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,” it added.
The recent admissions to its platform, FMDQ Exchange stressed, reflect the potential of the Nigerian DCM and the commendable level of confidence demonstrated by both issuers and investors in the market.
They also validate the efficient processes and integrated systems through which FMDQ Exchange, FMDQ Clear Limited, FMDQ Depository Limited and FMDQ Private Markets Limited, wholly owned subsidiaries of FMDQ Holdings Plc (FMDQ Group), has sustained an uninterrupted service delivery to the market and its diverse stakeholders during these uncertain times and beyond.
In keeping with its commitment to the development of the market, FMDQ Exchange promised to 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.