FMDQ OTC on Wednesday achieved another feat with the listing of N8 billion Nigeria Mortgage Refinance Company (NMRC) bond on its platform.
The bond is the first tranche of the Series-1 of NMRC 15-year 14.9 percent fixed rate under a N140 billion medium-term note programme due in 2030.
It was also gathered that the bond is part of government’s effort to finance the nation’s increasing housing deficit.
Mr Bola Onadele, the Managing Director, FMDQ, said that the issuance of the bond by NMRC and subsequent listing on FMDQ would create long-term funding for mortgage financing.
Onadele said that the listing would also aid the development of corporate bond market in the country.
According to him, the listing of NMRC bonds on FMDQ would create liquidity for the instrument, price formation for the issuance of new bonds, price discovery for investors and foster market transparency.
He said that FMDQ would provide the necessary secondary market platform for the bonds to thrive and by extension ensure success of the Nigerian primary and secondary mortgage markets.
Prof. Charles Inyangete, the NMRC Managing Director, commended FMDQ for the successful listing of the bond on its platform.
Inyangete said that “the successful completion of the bond issuance and the investor interest generated by the issue underscores the confidence reposed in the operational model of the NMRC.”
He said that the market had bought into NMRC’s objective of getting long-term funds from the capital market for the development of the mortgage industry.
Inyangete said that the company would continue to bridge the country’s housing deficit by providing affordable housing finance.
“NMRC is committed to transmitting the full benefit of the pricing efficiency achieved in its funding cost to home borrowers through the participating primary mortgage lenders,” he said.
Mr Kehinde Ogundimu, the NMRC Chief Financial Officer, said that the listing would attract more investors to the bond thereby providing liquidity at lower interest rate.
Ogundimu said that the company was collaborating with state governments to key into the programme to reduce the housing deficit.
He said that NMRC had engaged about 21 states on ways to address mortgage financing and to key into the exercise.
The chief financial officer said that foreclosure process needed to be uniform and faster to improve housing deficit.
Mr Chinua Azubike, the Managing Director, Dunn Loren Merrifield Advisory Partners Ltd., said that the bond would engender market confidence in the credit standing of NMRC as a bond issuing entity.
Azubike said that the bond listing would enable NMRC to connect the Nigerian mortgage market to the capital market, particularly the pension fund investors which accounted for 78 percent of the bond investors.
Ms Tumi Sekoni, FMDQ Head, Business Development, said that the company would collaborate with NMRC and other key stakeholders to map out relevant initiatives and campaigns to educate the market on mortgage-related debt instruments.
Sekoni said that the Nigerian Securities Exchange would provide continuous disclosure on bonds listed on the platform to foster investor confidence. (NAN)