Today, a member of the Standard Bank Group Limited—Stanbic IBTC Capital—and MiDA Advisors joined the Nigeria Mortgage Refinance Company (NMRC) in announcing a $228 million blended finance deal for mortgage refinancing in Nigeria. The proceeds will be used to provide new loans to eligible primary lending institutions (PLIs) by refinancing or pre-financing qualified mortgage loans to borrowers across Nigeria.
To expand the availability of affordable mortgages in Nigeria, NMRC partnered in 2022 with Johannesburg-headquartered Standard Bank Group Limited, its member company—Stanbic IBTC Capital Limited—and U.S.-based MiDA Advisors to co-create a $228 million blended finance solution aimed at mobilizing long-term financing at scale. The financing includes a $200 million commitment from the U.S. International Development Finance Corporation (DFC) to NMRC, along with $28 million sourced from local financial markets. Stanbic IBTC Capital Limited and MiDA Advisors acted as the joint financial advisors on this landmark transaction.
This financing will enable NMRC to provide new loans to PLIs, which will refinance or pre-finance mortgage loans to eligible borrowers across Nigeria, with at least 20% of the loan proceeds targeting informal market segments. An estimated 40% of the mortgages to be refinanced or pre-financed 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, noting it as clear proof of NMRC’s position 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 positively 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 to 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 them. This is truly an incredible transaction with a positive impact on 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.”
