AG Mortgage Bank’s Drive to Alleviate Nationwide Housing Shortage Through Funding Initiative

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AG Mortgage Bank plc has successfully concluded the initial segment of its N2 billion tier-2 capital issuance, marking a milestone through its Special Purpose Vehicle, AG Funding SPV Limited.

During the signing ceremony over the weekend, Ngozi Anyogu, the Managing Director of AG Mortgage Bank, underscored the significance of the 17.5 per cent seven-year fixed rate note issuance. Anyogu emphasized that it not only fortifies the bank’s financial position but is pivotal in supporting diverse projects across the nation, aiming to narrow the housing deficit in the country.

“This capital raise significantly enhances our capabilities as a primary mortgage institution and ensures seamless operations in providing mortgage loans and financing for various real estate projects,” remarked Anyogu.

In addressing Nigeria’s housing deficit, Anyogu highlighted the bank’s multifaceted strategy, which involves funding construction on the supply side and stimulating demand by educating the public about the benefits of mortgages while offering convenient payment plans.

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“We are actively engaged in projects across Lagos, Abuja, Enugu, Port Harcourt, and other regions in collaboration with developers. We anticipate launching several more projects by 2024,” stated Anyogu.

Emphasizing the bank’s commitment to becoming a prominent name in the housing and mortgage sector, Anyogu emphasized extensive collaboration efforts. “Our pipeline projects total around N40 billion, and through extensive collaboration, we aim to bridge the funding gap without relying solely on customer deposits,” affirmed Anyogu.

WealthBridge Capital Partners Limited, acting as the transaction arranger, played a pivotal role in facilitating the issuance. Ahmed Lawal, Group Managing Director at WealthBridge Group, reaffirmed their commitment to supporting AG Mortgage in delivering exceptional services and creating assets for clients in innovative ways.

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Lawal stressed the significance of Public-Private Partnerships (PPPs) in closing Nigeria’s housing gap, urging the government to strengthen collaborations with stakeholders and formulate policies that bolster housing developers while empowering mortgage and financial institutions.

“The Federal Ministry of Housing and Urban Development is making strides in this area. Yet, affordability remains crucial, where institutions like AG Mortgage step in to offer sustainable payment plans for people to own their dream homes,” highlighted Lawal.

Source: Sun newspaper

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