Investors have fully subscribed to AG Mortgage Bank Plc’s N3.97 billion Series 2 and Series 3 Commercial Paper (CP) issuance, strengthening the lender’s liquidity position and providing additional funding to support its mortgage financing operations. The 100 per cent subscription rate signals strong investor appetite for the mortgage bank’s short-term debt instruments and confidence in its financial position, governance standards and growth strategy, the firm said. The Series 2 and Series 3 commercial papers were issued under AG Mortgage Bank’s registered N5 billion Commercial Paper Programme. The combined N3.97 billion raised represents a substantial portion of the programme’s approved limit. The issuance opened on June 10 and closed on June 18, with the two series carrying tenors of 270 days and 364 days. The CPs were issued at gross implied yields ranging between 22.5 per cent and 24 per cent. FSDH Capital Limited acted as Lead Arranger, while Pathway Advisors Limited, AIICO Capital Limited and ARM Capital Limited served as Joint Arrangers. The net proceeds will be used to meet AG Mortgage Bank’s short-term working capital and funding requirements, strengthening its ability to expand mortgage financing and support its real estate pipeline. Commenting on the successful issuance, the Managing Director and Chief Executive Officer of AG Mortgage Bank, Mr Ngozi Anyogu, said the full subscription demonstrated investors’ confidence in the institution. “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,” Anyogu said. He added that the successful transaction reinforced the bank’s position within Nigeria’s mortgage and capital markets. According to him, the proceeds would strengthen the bank’s liquidity and support its short-term funding requirements, allowing it to deepen mortgage financing and accelerate the delivery of affordable and accessible housing solutions. The successful fund raising comes on the back of improved financial performance by the mortgage lender. For the financial year ended December 31, 2025, AG Mortgage Bank’s interest income rose by 28.1 per cent to N3.65 billion from N2.85 billion in 2024, driven by growth in its loan portfolio and increased mortgage financing activities. Net interest income increased to N2.21 billion, while operating profit rose significantly to N1.39 billion from N729.12 million recorded in the previous year. Profit after tax more than doubled, climbing by 130 per cent to N1.05 billion from N458.7 million in 2024. The performance reflected improved operational efficiency, stronger earnings capacity and disciplined cost management.
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