The Nigeria Mortgage Refinance Company Plc has secured $228 million in affordable mortgage financing aimed at supporting vulnerable earners and borrowers.
This was disclosed in statement by NMRC on Thursday via its X account.
The funding is part of a partnership with the United States International Development Finance Corporation and was facilitated by MiDA Advisors and Stanbic IBTC Capital, a member of the Standard Bank Group.
The funding was secured through a partnership involving the United States International Development Finance Corporation (DFC) and NMRC, as part of a $228 million blended financing transaction.
This initiative was arranged by MiDA Advisors and Stanbic IBTC Capital, a member of the Standard Bank Group.
The funding will help address the liquidity gap in Nigeria’s mortgage finance market and aims to co-create a blended finance solution that mobilizes long-term financing on a large scale.
According to the statement, the transaction comprises a $200 million loan from the U.S. International Development Finance Corporation (DFC) and $28 million sourced from local financial markets, resulting in a total of $228 million in long-term blended financing for NMRC.
The company said it aims to provide the necessary liquidity to help bridge Nigeria’s housing deficit while promoting more equitable economic growth and development.
“The facility will be disbursed through on-lending to primary lending institutions, including commercial banks and primary mortgage banks, to refinance or pre-finance eligible mortgage loans to qualifying mortgage borrowers across Nigeria.
“Therefore, the financing is expected to provide vulnerable segments of the population with access to credit facilities, including Nigeria’s large informal sector, low-income earners, and women who face significant challenges in their quest for homeownership.
“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,” the statement partially read.
The Managing Director and Chief Executive Officer of NMRC, Mr. Kehinde Ogundimu, expressed appreciation to DFC for its positive role within Nigeria’s housing ecosystem.
“This transaction will certainly enhance our efforts to provide affordable long-term housing finance in a way that will impact the overall sector. It shows that DFC, and indeed other local and international financing institutions, have a great deal 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 reflects 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 CEO, Mr. Aymeric Saha, expressed satisfaction in partnering with NMRC and Standard Bank to arrange a transformative housing finance solution expected to benefit over 6,000 households in Nigeria.
Saha explained that the transaction highlights the effectiveness of partnerships with NMRC in addressing the social infrastructure financing needs in the region.
