NMRC Secures $200 million in funding from the U.S. International Development Finance Corporation for Affordable Mortgage Financing
…Funding is part of a $228 million Blended Financing Transaction Arranged by MiDA Advisors and Stanbic IBTC Capital, a member of Standard Bank Group.
To help address the liquidity gap in Nigeria's mortgage finance market, Nigeria Mortgage Refinance Company Plc (NMRC) partnered with U.S.-headquartered MiDA Advisors and Johannesburg-headquartered Standard Bank Group to co-create a blended finance solution to mobilize long-term financing at scale. The transaction will include 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 long-term blended financing to NMRC.
The transaction and strategic partnership with DFC will provide the needed liquidity to support the country's quest to bridge the housing deficit while driving more equitable economic growth and development. The facility will be disbursed through on-lending to primary lending institutions, i.e. commercial banks and primary mortgage banks, to refinance or pre-finance eligible mortgage loans to qualifying mortgage borrowers across Nigeria.
According to the National Bureau of Statistics, 63% of Nigerians are multidimensionally poor. Therefore, the financing is expected to provide vulnerable population segments, such as women who face extreme difficulties in their quest to own homes, with access to credit facilities. 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.
Reacting to the approval of this loan, the Managing Director and Chief Executive Officer of NMRC, Mr. Kehinde Ogundimu, expressed gratitude to DFC, noting that it is clear proof of NMRC's positioning as a key institution within the housing ecosystem. "This transaction shows that DFC and, indeed, other local and international financing institutions have a lot of trust in our capacity to manage long-term facilities that will make a tangible impact on the lives of Nigerians.
"The keen focus on low-income earners, the informal sector, and women is indicative of the direction of our efforts. As an institution, we are committed to driving equitable access to housing credit facilities thus enabling vulnerable Nigerians to achieve their homeownership dreams," he added.
MiDA Advisors Chief Executive Officer, Mr. Aymeric Saha, noted “we are very pleased to partner with NMRC...
See the full story here..
https://lnkd.in/djgk4rmc
