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FMBN seeks funds for housing development from 4 foreign investors

The Federal Mortgage Bank of Nigeria (FMBN) is expecting off-shore facilities from four international investors for housing development, according to the Managing Director, Mr Abdulsalami Ahmed.

He made the announcement on Wednesday in Lagos in an interview with journalist. Ahmed said the bank would issue multiple international debt instruments, using a standard documentations framework for a transaction size of up to $1.5 billion (N225b) in tranches.

He named the four investors as Euromoney Medium-Term Note (EMTN) programme, SINOMACH (China National Machinery Industry Corporation), Korea Land and Housing Corporation and Foras International Ltd.

“The strategy is to take advantage of international investors” preference for public sovereign investments and more liquid instruments, such as the Eurobond, under prevailing market conditions. The EMTN programme is a financing platform used regularly by international financial institutions to raise cheap funds with short and long term maturities from the international debt market,” he added.

Ahmed explained that the proceeds from EMTN programme would be given on commercial terms for the construction of housing units by federal and states governments’ housing agencies as well as private developers.

“The debit tranche is estimated at $500 million (N75b). To provide investors” confidence, the notes are to be secured by the guarantee of the Federal Government,”” he said.

The managing director said SINOMACH would be used to develop a new district in the Federal Capital Territory (FCT).  He noted that with the SINOMACH facility, about one million houses would be provided in phases of 100,000 houses within the FCT.


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