This marks the second large scale housing finance transaction in Africa led by Standard Bank Group Limited and MiDA Advisors within the past two years, securing around $500 million in total capital raise.
Today, a member of the Standard Bank Group Limited – Stanbic IBTC Capital -and MiDA Advisors join Nigeria Mortgage Refinance Company (NMRC), in announcinga $228 million blended finance deal for mortgage refinancing in Nigeria. The proceeds will be used to make new loans to eligible primary lending institutions (“PLIs”) by refinancing or prefinancing qualified mortgage loans to borrowers across Nigeria.
To help expand the availability of affordable mortgages in Nigeria, in 2022 NMRC partnered with Johannesburg headquartered Standard Bank Group Limited, and its member company – Stanbic IBTC Capital Limited – together with U.S. headquartered MiDA Advisors to co-create a $228 million blended finance solution to mobilise long-term financing at scale, out of which will include a $200 million commitment from the U.S. International Development Finance Corporation (DFC) to NMRC and a $28 million financing sourced from local financial markets. Stanbic IBTC Capital Limited and MiDA Advisors are the joint Financial Advisors on this landmark transaction.
This financing will enable NMRC to finance new loans to primary lending institutions that will refinance or prefinance mortgage loans to eligible mortgage borrowers across Nigeria with at least 20% of the loan proceeds targeting informal markets segments. An estimated 40% of the mortgages to be refinanced or prefinanced will be those underwritten to women as borrowers or co-borrowers. Reacting to the approval of this financing, the Managing Director, and Chief Executive Officer of NMRC, Mr Kehinde Ogundimu, expressed his gratitude and noted that it is a clear proof of NMRC’s positioning as a key institution within the housing ecosystem.
“This transaction will certainly enhance our efforts to provide affordable long-term housing finance in a manner that will impact the overall sector. The keen focus on low-income earners, the informal sector, and women is indicative of the direction of our efforts. As an institution, we are committed to driving equitable access to housing credit facilities thus enabling vulnerable Nigerians to achieve their homeownership dreams,” he said.
“This transaction demonstrates the bank’s commitment in driving Africa’s socio-economic development through the facilitation of sustainable investment on the continent. We understand the needs and challenges of Africa’s people and continue to deliver innovative solutions to address these. This is truly an incredible transaction with a positive impact to Nigeria and the continent,” says Mr Luvuyo Masinda, Chief Executive of Corporate and Investment Banking at Standard Bank Group.
“This landmark transaction marks a turning point in financing affordable housing in Nigeria” said Mr Aymeric Saha, CEO of MiDA Advisors. “MiDA Advisors is proud to partner with NMRC and a member of the Standard Bank Group – Stanbic IBTC Capital Limited – to enhance liquidity needs in Nigeria’s affordable housing sector.”
