Investors snap up AG Mortgage Bank’s N3.97b CP with 100% subscription

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By Babajide Komolafe

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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.

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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.

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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.

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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.

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While commenting on the fully subscribed Series 2 and Series 3 commercial paper notes, 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.”

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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”

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