By Peter Egwuatu

Stanbic IBTC Capital and MiDA Advisors have joined Nigeria Mortgage Refinance Company (NMRC), in announcing a $228 million blended finance deal for mortgage refinancing in Nigeria.

The proceeds will be used to make new loans to eligible primary lending institutions by refinancing or prefinancing qualified mortgage loans to borrowers across Nigeria.

According to a statement made available to Vanguard, “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.

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 loan 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.”

The statement further highlighted that the 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.

Reacting to the approval of this financing, the Managing Director, and Chief Executive Officer of NMRC, Mr. Kehinde Ogundimu, said: “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. 

Also commenting on the transaction, Oladele Sotubo, Chief Executive of Stanbic IBTC Capital Limited, the wholly owned investment banking subsidiary of Stanbic IBTC Holdings PLC said, “Stanbic IBTC Capital is delighted to have worked alongside MiDA Advisors to facilitate this landmark financing to be aimed towards enhancing accessibility and affordability of mortgages in Nigeria.”