FMDQ Hosts Pioneer Listing of the Nigeria Mortgage Refinance Company PLC Bond Posted on: October 1, 2015

FMDQ Hosts Pioneer Listing of the Nigeria Mortgage Refinance Company PLC Bond. FMDQ OTC PLC (FMDQ) recorded yet another milestone achievement in the development of the Nigerian debt capital market as it listed the Nigeria Mortgage Refinance Company PLC (NMRC) ₦8,000,000,000 Series 1, 15-Year 14.9% Fixed Rate Bond under a ₦140,000,000,000.00 Medium-Term Note Programme (the NMRC Bond) on its platform. To which end, FMDQ played host to the issuer, represented by the MD/CEO NMRC, Prof. Charles Inyangete and the Registration Member (Listings)/sponsor of the bond on FMDQ, represented by the MD, Dunn Loren Merrifield Advisory Partners Ltd., Mr. Chinua Azubike, to a prestigious Listing Ceremony in commemoration of this landmark event.

Highlights of the Ceremony, as have become customary of FMDQ, included the signing of the FMDQ Bond Listings Register, presentation of the FMDQ Listing Certificate by FMDQ’s Vice-Chairman, Mr. Jibril Aku, unveiling of the FMDQ Listing Scroll, presentation of the FMDQ Listing Plaque, and the autographing of the FMDQ Bond Listing Wall.

Whilst commending the NMRC visioning team, the MD/CEO of FMDQ, Mr. Bola Onadele. Koko noted that the issuance of this bond by NMRC and subsequent listing on FMDQ, mark essential steps towards development of not only the corporate bond market in Nigeria, but also the Nigerian housing market through the creation of long term funding for mortgage financing. Listing of NMRC bonds on FMDQ will help create liquidity for these instruments, price formation for the issuance of new bonds, price discovery for investors in these securities and foster market transparency. FMDQ will provide the necessary secondary market platform for the bonds to thrive and by extension ensuring success of the Nigerian primary and secondary mortgage markets.

According to Prof. Inyangete, “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”.

Also speaking at the ceremony, Mr. Azubike highlighted that the successful debut of this landmark 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 78% of the bond investors, adding that this will unlock the potential for increased mortgage volumes and sustainable housing market supply.

Ms. Tumi Sekoni, the Head, Business Development Group at FMDQ, during the welcome address, stated that FMDQ, in partnership with NMRC and other key stakeholders will engage in relevant initiatives and campaigns to educate the market on mortgage-related debt instruments, like Mortgage-Backed Securities, Real Estate Investment Trusts, Sukuk, among others, in readiness for the ensuing housing revolution the Nigerian market is positioned to experience.”

The securities exchange shall provide continuous information disclosure on bonds listed on the platform to include price/value data and detailed issuers’/issue information to stakeholders via the ‘Listings & Quotations’ page on FMDQ website. The NMRC Bond shall be included on the FMDQ-Bloomberg E-Bond Trading System (E-Bond) and also on the FMDQ website, providing issuers, investors, dealers, regulators and the general public with the relevant information for improved price discovery and transparency.