Investors interested in the ordinary shares of Nigeria Mortgage Refinance Company (NMRC) Plc now have opportunity to buy into Nigeria’s first and only mortgage refinancing company with the listing of the company on the NASD OTC Plc.
The NASD is an over-the-counter (OTC) platform that trades on unlisted securities. It is licensed by Securities and Exchange Commission (SEC). The NASD OTC was formally launched on July 1 and opened for trading on July 2, 2013.
Listing details obtained by The Nation indicated that NMRC’s 1.76 billion ordinary shares were listed at N4 per share, which was the last issue price for the shares. At the last trading, the company’s share price has, however, increased to N4.55 per share, which subsists as the company’s current price on the board. At the last count, a total of N568.75 million was staked on 125 million ordinary shares of the NMRC, which trades under the security code SDNMRCPLC on the over the counter market.
Audited report and accounts of NMRC for the 2014 financial year indicated that the company made a total income of N732.92 million and profit after tax of N160.15 million.
It should be recalled that the NMRC had earlier listed its N8 billion bond on the FMDQ OTC Plc. The N8 billion NMRC bond carries a coupon rate of 14.9 per cent and due on 2030. The N8 billion bond was part of the company’s N140 billion Medium-Term Note Programme.
The establishment of the NMRC in 2013 set in motion the course towards homeownership from accessibility to affordable, adequate and quality housing in the Nigerian economy, through the promotion and development of the primary and secondary mortgage markets in Nigeria.
However, a crucial aspect in the success of the NMRC model being the raising of finance from the debt capital market through regular and large issuances of bonds. The first tranche was the N8.0 billion that was listed on the FMDQ OTC.
Other major companies on the NASD included Dufil Prima Foods Plc, the manufacturer of Indomie Noodles; Friesland Campina Wamco Nigeria Plc, manufacturer of Peak Milk brand; Industrial & General Insurance Plc, Central Securities Clearing System Plc, the clearing and depository arm of the Nigerian Stock Exchange and Jaiz Bank Plc, the Islamic bank.
Other stocks included Acorn Petroleum Plc, Arm Life Plc, Afriland Properties Plc, BGL Plc, Consolidated Breweries Plc, Food Concepts Plc, Geo-Fluids Plc, Golden Capital Plc, Niger Delta Exploration & Production Plc, Partnership Investment Company Plc, Resourcery Plc, Riggs Ventures West Africa Plc, Swap Technologies & Telecomms Plc and Trustbond Mortgage Bank Plc.
NMRC was incorporated on June 24, 2013, after obtaining an Approval -in-principle from the Central Bank of Nigeria (CBN) on June 20, 2013. It was issued its licence for operations on February 18, this year.
NMRC was established to bridge the funding cost of residential mortgages and promote the availability as well as the affordability of good housing to Nigerians by providing increased liquidity in the mortgage market though the mortgage and commercial banks.
It was a key component of the Nigeria Housing Finance Programme, which was initiated by the Federal Ministry of Finance (FMOF), the Central Bank of Nigeria (CBN), Federal Ministry of Lands & Urban Development & Housing and the World Bank/IFC, with the principal objective of addressing the long-term funding constraints hindering the growth of the primary mortgage market, and reducing the costs of residential mortgages and available housing to working Nigerians