Investors snap up AG Mortgage Bank’s N3.97bn commercial paper with 100% subscription

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.

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.

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.

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.

While commenting on the fully subscribed Series 2 and Series 3 commercial paper notes, Ngozi Anyogu, Managing Director/ 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.”

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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AG Mortgage Bank Plc’s experienced management team has continued to demonstrate strong execution capabilities, prudent risk management, and disciplined balance sheet growth, driving the bank’s consistent financial performance.

For the financial year ended December 31, 2025, interest income increased by 28.1 percent to N3.65 billion from N2.85 billion in 2024, supported by sustained growth in the Bank’s loan portfolio and increased mortgage financing activities.

Net interest income grew to N2.21 billion, while operating profit rose significantly to N1.39 billion from N729.12 million in the preceding year.

Profit after tax (PAT) more than doubled, increasing by 130 percent to N1.05 billion from N458.7 million in 2024, reflecting improved operational efficiency, enhanced earnings capacity, and effective cost management.

Established in July 2004 and licensed by the Central Bank of Nigeria within the same year, AG Mortgage Bank Plc is a leading Primary Mortgage Bank in Nigeria with a Long Term Rating of BBB by DataPro Limited and Short Term Rating of A2 by the same Rating agency.

The bank commenced operations in 2005 with a clear mandate to expand access to affordable mortgage financing for Nigerians at home and abroad, thereby supporting national housing development.

Following a successful private placement in 2007, AGMB transitioned into a public limited liability company and was subsequently rebranded from AG Homes Savings & Loans to AG Mortgage Bank Plc in 2015.

Since its inception, the bank has grown its asset base from approximately N200 million to over N33 billion, reflecting sustained operational expansion and increasing relevance within the Nigerian mortgage sector.

Over the past two decades, AGMB has played a pivotal role in advancing Nigeria’s mortgage ecosystem through innovative product offerings, technology adoption, and a strong customer-centric approach.

The bank is accredited by the Federal Mortgage Bank of Nigeria (FMBN) to access the National Housing Fund (NHF) scheme, enabling it to deliver affordable mortgage solutions across income segments.

It is also actively involved in key federal housing initiatives, including the Family Homes Funds (FHF) programme and the Mortgage Refinancing and Expansion Intervention Facility (MREIF).

Notably, AG Mortgage Bank was the first Primary Mortgage Institution to be accredited, the first to receive disbursement, and the first to access the initial tranche under these intervention schemes, underscoring its strong execution capacity and institutional credibility.

The bank has since consistently deployed these funds in alignment with programme objectives, reinforcing its position as a trusted and development-focused mortgage institution and a key partner in government-led efforts to strengthen Nigeria’s housing finance ecosystem.

Its diverse product offerings, ranging from tenant-ownership mortgages to construction finance, savings products, investment notes, and digital banking services, have positioned AGMB as a trusted enabler of homeownership and property development across Nigeria.

In line with its drive to strengthen market presence and expand service channels, the bank launched AG Sprint, its digital banking platform designed to provide seamless, fast, and secure financial transactions.

The platform enhances customer access to mortgage-focused deposit accounts, payments, transfers, and e-banking solutions through channels such as Quickteller, PayDirect, POS, and direct debit systems.

AG Mortgage Bank Plc strong financial performance, coupled with its sound corporate governance framework, prudent risk management practices, and strategic focus on sustainable growth, positions it favourably to continue creating long-term value for its customers, shareholders, and other stakeholders.