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SWF To Invest $10m in Mortgage Financing Company

February 27, 2014 (Ventures Africa)

VENTURES AFRICANigerian Sovereign Investment Authority (NSIA), managers of the country’s Sovereign Wealth Fund (SWF), has announced plans to invest $10m in the state-owned Mortgage Refinancing Company (MRC).

The planned investment in MRC is about 20 per cent of the initial total capital of the firm, said Uche Orji, NSIA’s CEO, adding that the investment was made as a core equity provider of the mortgage financier.

"We have put $10m in the NMRC, which is roughly 20 per cent of the initial capital of the NMRC. Our strategy is to invest in tools that will accelerate the market as well as make direct investments. To that extent, we made an investment in the NMRC as a core equity investor," he said.

The NSIA boss also revealed that the company was also negotiating with stakeholders to develop an affordable housing project, which would be executed before the end of this year.

The NMRC established to help property owners refinance their mortgage expenses if interest rates drop, using the same property as security or collateral. It also hopes to leverage on partnerships with the private sector to make it easier for Nigerians to own their houses.

Two weeks ago, the government injected a further $550m into the fund managed by the NSIA, bringing its total equity portfolio to to $1.55bn.

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Source: Ventures Africa

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