Trustbond considers partnership with policy institutions on affordable housing

Having effortlessly crossed the hurdle to raise its share capital to N5 billion following a special placement of N500 million ordinary shares of N1.00 each at N1.00 per share, Trustbond Mortgage Bank plc, formerly Intercontinental Homes plc, says it is considering partnership and collaboration with relevant policy institutions to provide affordable housing for low-income earners.

The old generation mortgage bank which, by the last count, was adjudged the second-most capitalised primary mortgage bank with its N4.7 billion capital base, disclosed that it was looking at working closely with Federal Mortgage Bank of Nigeria (FMBN) to provide affordable housing for the lower-income Nigerians.

Adeniyi Akinlusi, managing director and chief executive officer of the bank, who gave this hint at the bank’s completion board meeting to approve the N500 million special placement, said they were also looking at how to work with developers with appropriate building technology which, he said, was key to developing affordable housing.

“We are also considering working with the Federal Housing Authority (FHA) to see how we can deliver affordable housing. We are actually looking to see how we can work with major policy institutions and since we are already into estate development financing and providing mortgage, we are going to see how we can work with other parties,” he assured.

Etiwe Uwa, chairman of the bank’s board, had explained that the whole idea of the N500 million special placement was just for the core investor to provide the fund for the purpose of raising their capital base to the required N5 billion that would enable them operate nationally, emphasising that it was basically to enable them meet the regulatory requirement that the Central Bank of Nigeria (CBN) has recently imposed.

The chairman hoped that the December deadline for recapitalisation was realistic, noting, “There will be a couple of mergers and acquisitions here and there. Some banks have almost met the requirement while some have not.” He also expressed hope that “with this consolidation, the mortgage banks will have enough money to disburse to people who would want mortgage loans”.

He commended the move by the Federal Government along with the World Bank to set up a mortgage refinance company (MRC), saying with this laudable initiative, there was hope that the mortgage sector would pick up.

“When the refinance company picks up along with the