AG Mortgage Bank Plc has significantly bolstered its liquidity position after investors completely snapped up its N3.97 billion Series 2 and 3 Commercial Paper (CP) issuance. By achieving a 100 percent subscription rate, the bank has secured critical, cost-effective short-term funding that will enable it to scale its mortgage financing operations and accelerate its real estate pipeline. The successful issuance marks another major milestone for the mortgage lender, signaling strong institutional trust in the bank’s financial health and strategic growth trajectory.
The Series 2 and Series 3 commercial paper notes were issued under AG Mortgage Bank Plc registered N5 billion Commercial Paper Programme. By pulling in N3.97 billion through these combined series, the bank successfully raised the vast majority of its total approved programme limit in one sweep. The successful commercial paper issuance of N3.97billion opened on June 10 and closed on June 18. With a tenor of 270 days and 364 days, the Series 2 and 3 CPs were issued at gross implied yield of between 22.5 percent and 24 percent.
The Lead Arranger is FSDH Capital Limited, while the Joint Arrangers are Pathway Advisors Limited, AIICO Capital Limited, and ARM Capital Limited. The net proceeds from the commercial papers issuance will be used to support AG Mortgage Bank Plc short-term working capital and funding requirements.
Mr. Ngozi Anyogu, Managing Director and Chief Executive Officer of AG Mortgage Bank Plc (AGMB) said, “The successful subscription of our commercial paper issuance reflects the confidence that investors have in AG Mortgage Bank, our governance standards, and our long-term vision for expanding access to housing finance. It reinforces our position as a trusted institution within Nigeria’s mortgage and capital markets.”
Speaking further, he said “The proceeds from this issuance will strengthen our liquidity position and support our short-term funding requirements, enabling us to deepen mortgage financing and accelerate the delivery of affordable, accessible, and available housing solutions for Nigerians. We remain committed to driving innovation in housing finance and creating sustainable value for our customers, investors, and the broader economy”
You know how the mortgage industry is struggling to provide affordable housing for Nigerians? AG Mortgage Bank’s massive commercial paper subscription is a huge step in the right direction, showing the bank’s commitment to its vision of expanding access to housing finance. And with this funding, the bank will be well-positioned to take on more mortgage deals, making it easier for Nigerians to own homes.
“The successful subscription of our commercial paper issuance reflects the confidence that investors have in AG Mortgage Bank, our governance standards, and our long-term vision for expanding access to housing finance. It reinforces our position as a trusted institution within Nigeria’s mortgage and capital markets.”
Mr. Ngozi Anyogu, Managing Director and Chief Executive Officer of AG Mortgage Bank Plc (AGMB) has a background in banking and finance, having worked in top financial institutions in Nigeria. With his leadership, AG Mortgage Bank has made significant strides in mortgage financing, and this commercial paper issuance is a testament to his vision for the industry.
AG Mortgage Bank has a long history of providing mortgage financing solutions to Nigerians, and its commitment to expanding access to affordable housing is a welcome development. With this funding, the bank will be able to provide more mortgage deals, making it easier for Nigerians to own homes.
“The proceeds from this issuance will strengthen our liquidity position and support our short-term funding requirements, enabling us to deepen mortgage financing and accelerate the delivery of affordable, accessible, and available housing solutions for Nigerians. We remain committed to driving innovation in housing finance and creating sustainable value for our customers, investors, and the broader economy”