The Nigerian Mortgage Market Receives a Boost… as Mortgage Warehouse Funding Limited Registers ₦20.00bn CP Programme on FMDQ

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Committed to fostering development by championing and supporting market-driven strategic initiatives, FMDQ OTC Securities Exchange (FMDQ or the OTC Exchange), through its Board Listings, Markets and Technology Committee, on Tuesday, November 28, 2017, approved the registration of the ₦20.00 billion Mortgage Warehouse Funding Limited (MWFL) Commercial Paper (CP) Programme (the MWFL CP Programme), to the platform of the OTC Exchange.

MWFL, set up as a ‘special purpose company’, is aimed at providing short-term, economically viable funding to its Member Mortgage Banks (MMBs) across Nigeria. With the support of the Central Bank of Nigeria, the National Pension Commission, Mortgage Bankers Association of Nigeria, Nigeria Mortgage Refinance Company PLC (NMRC), Dunn Loren Merrifield Advisory Partners Limited and other key stakeholders, MWFL is set to support the tackling of the seventeen (17) million housing deficit in Nigeria, by championing programmes to resolve the housing finance issues in the mortgage subsector.

The activities of MWFL are aimed at complementing those of NMRC, such that whilst NMRC is licensed to match funding and provide liquidity to the mortgage sector via long-term secondary market refinancing, MWFL will serve to provide an equally reliable and parallel source of short-term funding for primary mortgage originations. This short-term finance will enable MMBs to expand their origination capacity and ultimately enable them to run their businesses more efficiently and profitably, whilst ensuring the steady growth of the mortgage subsector in the Nigerian housing sector.

With this CP Programme registration, MWFL has availed the opportunity to easily raise short-term finance from the debt capital markets, within the Programme limit, to support its business operations as at when required in the future. Series from this CP programme will be quoted on FMDQ.

As part of efforts towards unlocking the potential of the Nigerian economy, FMDQ shall continue to promote market development in collaboration with the participants, to make the markets within its purview globally competitive and well-aligned to support economic growth and development for the benefit of the citizenry. This CP Programme registration comes shortly after the OTC Exchange listed the Dufil Prima Foods PLC ₦10.00 billion Series 1 Fixed Rate Bond under its ₦40.00 billion Bond Issuance Programme.

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