. 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.
A member of the Standard Bank Group Limited – Stanbic IBTC Capital – and MiDA Advisors join 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.
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 mobilize 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.
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 market 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 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.
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. The objectives of the transaction are well within the Standard Bank Group’s purpose in driving Africa’s growth, and we are extremely proud to be a party to the transaction.
“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.”
About The Nigeria Mortgage Refinance Company.
The Nigeria Mortgage Refinance Company (NMRC) is a public limited liability company licensed as a mortgage refinance company by the Central Bank of Nigeria. NMRC operates as a private sector-driven mortgage refinance company with a public objective of promoting homeownership by providing long-term funding to operators in the Nigerian mortgage banking industry.
About Standard Bank Group and Stanbic IBTC Capital Limited
Standard Bank Group Limited is Africa's largest banking group ranked by assets and earnings, with operations in 20 African countries. Stanbic IBTC Capital Limited, a subsidiary of Stanbic IBTC Holdings PLC, and a member of the Standard Bank Group, is Nigeria’s leading investment bank. Stanbic IBTC Holdings PLC is a full-service financial institution which offers a wide range of products and services to a variety of segments. It provides end-to-end financial solutions which include corporate and investment banking, personal and business banking, stockbroking, and wealth management.
About MiDA Advisors
MiDA Advisors (MiDA) is a U.S.-based, global financial advisory firm specializing in institutional investments and trade services in Africa and other emerging markets. MiDA identifies investment opportunities and provides transaction financing services in partnership with development financial institutions, governments, institutional investors, and research organizations.
Originally founded during the 2nd U.S.-Africa Leaders’ Summit in 2016 under a cooperative agreement with the U.S. Agency for International Development (USAID), the team has expanded to a global financial services firm specializing in blended finance solutions and project financing to mobilize long-term capital into the real economy. In the last five years, MiDA facilitated and arranged investment deals targeting Africa and other emerging markets totaling over U.S. $2 billion. MiDA Advisors is headquartered in Washington, D.C., USA, with offices in Johannesburg, South Africa, and Nairobi, Kenya.
About U.S. DFC
The U.S. International Development Finance Corporation (DFC) partners with the private sector to finance solutions to the most critical challenges facing the developing world today. DFC invests across sectors including energy, healthcare, infrastructure, agriculture, and small business and financial services DFC investments adhere to high standards and respect the environment, human rights, and worker rights.
· South Africa The Standard Bank of South Africa Limited (Reg.No.1962/000738/06) is regulated by the South African Reserve Bank and is an Authorised Financial Services Provider and Credit Provider. Copyright 2023 Standard Bank Group. All rights reserved
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