NMRC lists N8Bn mortgage refinancing bond on NSE

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The Nigeria Mortgage Refinance Company (NMRC) has listed N8 billion bond on The floor Nigerian Stock Exchange (NSE). The 15-year bond with an interest rate of 14.9 per cent and a maturity date of July 29, 2030 was issued under the Company’s N140 Billion Medium Term Note Programme. \r\nTo engender market confidence in the credit standing of NMRC as a bond issuing entity and enhance access to the capital markets, the bond is backed by a guarantee of the Federal Government of Nigeria (FGN Guarantee) and has been accorded public national scale long-term rating of AAA (NG) (sf) by Global Credit Rating Company. \r\nIn addition, the bond was priced at a spread of 64 bps above the comparable FGN Bonds. According to the Managing Director of NMRC, professor Charles Inyangete, the listing of NMRC bond is expected to bring numerous benefits to the Nigerian capital market; “it will further improve the market capitalization as well as increase the participation of Pension Funds among others. It is on record that 78 per cent of the N8 billion raised by NRMC in July was subscribed to by Pension Funds”.\r\nWith this listing, NMRC has joined the likes of DANA Group Plc, Tower Aluminium Group and LA CASERA that have their Debt instruments listed on the NSE. Experts have expressed the view that listing the shares of NMRC will further strengthen as well as avail it cheaper funds to invest in the mortgage industry. \r\nCommenting on the listing, the CEO of NSE, Mr. Oscar N. Onyema, said the Exchange will continue to work with these set of companies to increase their participation on the Exchange with a view to getting their equities listed on any of its boards. He said, “The NSE will continue its engagement with the companies and provide adequate thought leadership to drive its listing objectives”.\r\nNMRC is licence by the CBN to conduct mortgage refinancing business in Nigeria. The company was established with the public purpose of developing the primary and secondary mortgage markets by raising long-term funds from the domestic capital market with a mandate to encourage and promote home ownership in Nigeria by providing long term financial facilities to the mortgage lenders, thereby increasing the availability and affordability of mortgage loans to Nigerians.

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