AG Mortgage Bank, a prominent Primary Mortgage Institution in Nigeria, has confirmed the successful completion of the initial tranche amounting to N1 billion in its N2 billion Tier Two Capital issuance.
This significant achievement was accomplished through the utilization of its Special Purpose Vehicle – AG Funding SPV Limited.
Objective and Utilization of Funds
The primary purpose of this capital raising initiative, as outlined in the institution’s statement, is to bolster the Bank’s tier two capital, ensuring it can effectively meet its operational requirements.
AG Mortgage Bank is recognized for providing high-quality mortgage lending and real estate construction financing services to the Nigerian populace. The issuance of these notes is strategically aimed at sustaining value creation for clients through Wealthbridge.
Impact on Capacity and Operations
Ngozi Anyogu, the Managing Director of AG Mortgage Bank, emphasized that the capital raise significantly enhances the institution’s capacity as a primary mortgage institution.
This strengthened financial position is pivotal in facilitating the seamless provision of mortgage loans and financing support for developers engaged in diverse real estate projects.
Endorsement and Support
Ahmed Lawal, the Group Managing Director/Chief Executive Officer at WealthBridge Group, expressed satisfaction in supporting AG Mortgage Bank’s commitment to delivering superior services and innovative asset creation for its clients.
Highlighting a past successful collaboration, Lawal cited the role of WealthBridge Group as an Arranger in a previous Note Issuance of N1.5 billion.
The funds were directed towards the construction of 108 housing units in Enugu, executed in partnership with Enugu State Housing Development Corporation.
AG Mortgage Bank Plc’s successful redemption of the Notes, resulting in full repayment to investors, exemplifies the positive impact and financial prudence achieved through such strategic financial instruments.
Strategic Resilience
Lawal expressed optimism that the current Note issuance will fortify AG Mortgage Bank’s business lines, enhancing its resilience against economic shocks or uncertainties.
The strategic infusion of capital is poised to reinforce the institution’s position and contribute to its sustained growth in the dynamic real estate and mortgage financing landscape.
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