MoFI Real Estate Fund Secures N250bn For Housing Project, Targets Additional N1tn
The Ministry of Finance Incorporated (MoFI) Real Estate Investment Fund (MREIF) has raised N250bn from its series 1 and 2 issuances, THE WHISTLER can report and the fund is targeting fresh N1tn from investors.
The capital raise was aimed at unlocking private capital for housing in Nigeria, according to a regulatory filing seen by THE WHISTLER.
The funds will also be used to provide affordable mortgage financing with up to 20-year repayment tenors at a 12 per cent interest rate.
According to the filing on Thursday, the latest issuance, which is the N100bn Series 2, was fully subscribed across institutional investors.
Recall that MoFI made a sole investment of N150bn in the Series 1 offer.
“The successful close of this pilot phase marks the beginning of a long-overdue transformation of Nigeria’s housing sector.
“The full subscription of the Series 2 offer demonstrates the pent-up demand for a structured long-term housing financing solution and affirms the private sector’s confidence in MREIF,” said the Minister of Finance and Coordinating Minister of the Economy, Wale Edun.
The fund, which has an Aaa rating from Agusto and an AA rating from GCR, now targets an N1tn multi-tranche programme.
“Future rounds will focus on broadening investor participation and accelerating housing development,” the filing revealed.
It said that the fund is structured to integrate seamlessly with commercial and mortgage banks, developers and financial institutions to scale long-term housing finance.
MoFI Real Estate Fund Secures N250bn For Housing Project, Targets Additional N1tn is first published on The Whistler Newspaper
