FMDQ lists N8 billion NMRC bond on platform

To further develop and deepen the domestic debt market, FMDQ OTC Plc, yesterday, listed the Nigeria Mortgage Refinance Company Plc (NMRC) ₦8b series 1, 15-Year fixed rate bond under a ₦140,000,000,000.00 Medium-Term Note Programme on its platform.

This follows the listing of an outstanding N4.8 trillion Federal Government of Nigeria Bonds and quotation of N2.8 trillion Nigeria Treasury Bills (NTB) the listings of the N30.5b UBA Bond and N15.54b Stanbic IBTC Bond on the platform.

Speaking at the bond listing ceremony, the Managing Director of Dunnloren Merrifield Advisory Partners Limited, Chinua Azubuike noted that the successful debut of the bond issue has engendered market confidence in the credit standing of NMRC as a bond issuing entity, allowing NMRC to connect the Nigerian mortgage market to the capital markets, particularly the pension fund investors which account for 78per cent of the bond investors

He added that this would unlock the potential for increased mortgage volumes and sustainable housing market supply.

The Chief Executive Officer of NMRC, Prof. Charles Inyangete explained that 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.

He pointed out that 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”.

The Chief Executive Officer of FMDQ, Bola Onadele who commended the NMRC team, explained that the issuance of this bond by NMRC and subsequent listing on FMDQ, mark essential steps towards development of both the corporate bond market and the Nigerian housing market through the creation of long term funding for mortgage financing.

The listing, according to him, would also help in creating liquidity for the instruments, providing price formation for the issuance of new bonds, as well as fostering market transparency.

He added that FMDQ would provide the necessary secondary market platform for the bonds to thrive and by extension ensuring success of the Nigerian primary and secondary mortgage markets.