The Nigeria Mortgage Refinance Company (NMRC), a private sector-driven mortgage refinancing company, has secured $200 million in funding.
Their goal is to promote home ownership for Nigerians while deepening the primary and secondary mortgage markets.
The Fund is from the U.S. International Development Finance Corporation (IDFC) for Affordable Mortgage Financing that is part of a $228 million Blended Financing Transaction Arranged by MiDA Advisors and Stanbic IBTC Capital, a member of Standard Bank Group.
NMRC entered into this partnership to address the liquidity gap in Nigeria’s mortgage finance market.
It also partnered with U.S.-headquartered MiDA Advisors and Johannesburg-headquartered Standard Bank Group to co-create a blended finance solution to mobilize long-term financing at scale.
The transaction include a $200 million loan from the U.S. International Development Finance Corporation (DFC) and $28 million in financing sourced from local financial markets, securing a total of $228 million long-term blended financing.
The transaction and strategic partnership with DFC will provide the needed liquidity to support the country’s quest to bridge the housing deficit while driving more equitable economic growth and development.
In addition, the facility will be disbursed through on-lending to primary lending institutions, i.e. commercial banks and primary mortgage banks, to refinance or pre-finance eligible mortgage loans to qualifying mortgage borrowers across Nigeria.
According to the National Bureau of Statistics (NBS), 63 per cent of Nigerians are multi-dimensionally poor. Therefore, the financing is expected to provide vulnerable population segments with access to credit facilities, including Nigeria’s large informal sector, low-income earners, and women who face extreme difficulties in their bid to own a home.
