The Nigeria Mortgage Refinance Company (NMRC), is partnering Stanbic IBTC Capital, a member of the Standard Bank Group Limited and MiDA Advisors in a $228 million blended finance deal for mortgage refinancing in Nigeria.
The proceeds will be used to make new loans to eligible primary lending institutions by refinancing or pre-financing qualified mortgage loans to borrowers across Nigeria.
This marks the second, large scale housing finance transaction in Africa led by Standard Bank Group Limited and MiDA Advisors within the past two years, securing around $500 million in total capital raise.
To help expand the availability of affordable mortgages in Nigeria; in 2022, NMRC partnered with Standard Bank Group Limited, and its member company, Stanbic IBTC Capital Limited, together with MiDA Advisors to co-create a $228 million blended finance solution to mobilise long-term financing at scale, out of which will include a $200 million loan from the U.S. International Development Finance Corporation (DFC) to NMRC and a $28 million financing sourced from local financial markets. Stanbic IBTC Capital Limited and MiDA Advisors are the joint Financial Advisors on this landmark transaction.
This financing will enable NMRC to finance new loans to primary lending institutions that will refinance or refinance mortgage loans to eligible mortgage borrowers across Nigeria with at least 20 per cent of the loan proceeds targeting informal markets segments.
An estimated 40 per cent of the mortgages to be refinanced or prefinanced will be those underwritten to women as borrowers or co-borrowers.
Speaking on the approval of this financing, the managing director, and chief executive officer of NMRC, Kehinde Ogundimu, noted that it is a clear proof of NMRC’s positioning as a key institution within the housing ecosystem.
He stated that “this transaction will certainly enhance our efforts to provide affordable long-term housing finance in a manner that will impact the overall sector. 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.”
The chief executive of Stanbic IBTC Capital, Oladele Sotubo said, “Stanbic IBTC Capital is delighted to have worked alongside MiDA Advisors to facilitate this landmark financing to be aimed towards enhancing accessibility and affordability of mortgages in Nigeria. The objectives of the transaction are well within the Standard Bank Group’s purpose in driving Africa’s growth, and we are extremely proud to be party to the transaction.
CEO of MiDA Advisors, Aymeric Saha stated that this landmark transaction marks a turning point in financing affordable housing in Nigeria, saying “MiDA Advisors is proud to partner with NMRC and Stanbic IBTC Capital to enhance liquidity needs in Nigeria’s affordable housing sector.”
