NMRC Lists N8,000,000,000 14.9% Series 1 Fixed Rate Bond Due 2030 on FMDQ Nigeria Mortgage Refinance Company (NMRC), in attaining its primary mandate of providing liquidity to the Nigerian mortgage market, recently completed its inaugural bond issue.

The N8,000,000,000 14.9% Series 1 Fixed Rate Bonds Due 2030 was issued under the Company‟s N140 Billion Medium Term Note Programme.

The SEC granted allotment approval to the Series 1 Bonds as at August 2015. On 30th September 2015, FMDQ formally admitted the Series 1 Bonds on its official list and trading by its dealing members.

With the successful completion of this landmark issue, NMRC has successfully connected the Nigerian mortgage market to the pension fund industry by efficiently intermediating longer-term funds from the capital markets towards the provision of more affordable and accessible housing finance in Nigeria.

The proceeds of the Bonds are being applied towards refinancing eligible mortgage loans originated by its participating mortgage lending banks. NMRC has commenced on-lending 15-year loan facilities to participating mortgage lending banks thereby extending the average life of their eligible mortgage portfolio from 9 years to at least 15 years maturity. Global Credit Rating Company, an internationally recognised and fully accredited rating agency, accorded a „AAA‟ crediting rating to the Bonds, and NMRC obtained an investment grade senior unsecured Issuer Rating of „BBB+‟.

The rating underscores the confidence reposed on the management of NMRC, the governance and risk management structure and the credit support provided by the FGN.

With a „AAA‟ investment grade rating, affirming the underlying credit strength of the Bonds, the Bookrunner successfully priced the Series 1 Bonds at a spread of 64 bps above the comparable FGN Bonds, introducing a new asset class that will diversify the portfolio of long-term investors. In a statement issued by the Chief Executive Officer of NMRC, Prof Charles Inyangete,

From left: Mr. Bola Onadele Koko, MD/ CEO, FMDQ OTC Plc, Prof. Charles Inyangete, MD/CEO NMRC Plc, Mr. Jibril Aku, Vice Chairman, Board of Directors, FMDQ OTC Plc and Mr. Chinua Azubike, MD, Dunn Loren Merrifield Advisory Partners Ltd at the NMRC Bond Listing ceremony held in FMDQ office, Lagos.

“The successful completion of the bond issuance and the investor interest generated by the issue underscores the confidence reposed in the underlying principle and operational model of the NMRC. The market has bought into NMRC‟s objective of intermediating long term funds from the capital market to the development of the mortgage industry and ultimately bridging Nigeria‟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, thereby driving activities that will deepen the mortgage market”.

According to Chinua Azubike, Managing Director, Dunn Loren Merrifield Advisory Partners, “the completion of this landmark issue has engendered market confidence in the credit standing of NMRC as a bond issuing entity, and we are satisfied by investors‟ demand despite the challenging market environment and macroeconomic concerns”.

NMRC is licence by the CBN to conduct mortgage refinancing business in Nigeria. The company was established with the public purpose of developing the primary and secondary mortgage markets by raising long-term funds from the domestic capital market with a mandate to encourage and promote home ownership in Nigeria by providing long term financial facilities to the mortgage lenders, thereby increasing the availability and affordability of mortgage loans to Nigerians.