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NMRC secures approval to raise N6 billion from capital market


Herbert Wigwe

Herbert Wigwe

Shareholders of the Nigeria Mortgage Refinance Company (NMRC) have approved the raising of an additional capital of N6 billion, to increase its share capital from N7.05 billion to N13.05 billion.

The approval was part of the resolutions passed by the company’s shareholders at the Extraordinary General Meeting (EGM) held recently in Lagos.

The N6 billion additional equity capital, to be raised during the first quarter of 2016 is under NMRC’s N28 billion equity issuance programme, established by a resolution also approved by the shareholders at the EGM.

The equity issuance programme is to be established by way of a shelf registration on terms and conditions as determined by the directors subject to approvals of shareholders and the relevant regulatory authorities.

The injection of equity capital will strengthen NMRC’s Tier 1 capital, improve its capital raising activities and boost its core business objective of mortgage refinancing.

The EGM, which was chaired by the NMRC Interim Chairman, Herbert Wigwe, also resolved to issue preference shares from the unissued share capital of the company of an aggregate value of up to N1.5 billion to two development finance institutions with strong footprints in housing finance, the International Finance Corporation (IFC) and Shelter Afrique.

The EGM signals a strong endorsement of NMRC’s operations by its shareholders, which positions it for consolidating on its recent bond issuance and refinancing activities.

At its maiden annual general meeting in August 2015, the interim Chairman pointed out that completion of the second tranche equity capital raising was part of NMRC’s priorities in the new financial year.

He also listed aggressive drive towards the adoption of the model mortgage and foreclosure law by pilot states and the completion of first round of mortgage refinancing as areas of focus for the premier mortgage refinance company.

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