By Chinyere Joel-Nwokeoma
Lagos, Jan. 27, 2021 FMDQ Securities Exchange Ltd. has approved listing of the Nigerian Mortgage Refinance Company Plc (NMRC) Series 3 N10 billion fixed rate bond under its N440 billion bond issuance programme on its platform.
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.
FMDQ said in a statement on Wednesday that the approval followed due diligence conducted by its Board, Listings and Markets Committee.
The statement said that the NMRC, with the listing, had joined a host of other corporate securities issued on the FMDQ Exchange Platform to kick off the year 2021.
It noted that in view of the sustained disruptions occasioned by the impact of the COVID-19 pandemic to businesses and economies, the Nigerian capital market had continued to provide succour for corporate entities looking to raise funds to meet shortfalls in their working capital needs as well as capital expenditures.
The statement quoted the Managing Director of NMRC, Mr Kehinde Ogundimu, as saying that “the proceeds of the issue will be used to refinance existing and conforming mortgage loans.”
Ogundimu said that the issuance also demonstrated 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.
He explained that the prevailing interest rate regime would reduce the rate at which the primary mortgage institutions un-lend to their customers and in the long-term, substantially drive reduction in mortgage interest rates.
FMDQ Group is Africa’s first vertically integrated financial market infrastructure (FMI) group providing a one-stop platform for seamless and cost-efficient execution, risk management, clearing, settlement and depository services, as well as data and information services across the debt capital, foreign exchange and derivatives markets in Nigeria.