AG Mortgage Bank Plc (AGMB) is raising N10 billion in debt/equity funding to expand its operations and deliver efficient, eco-friendly mortgage solutions.
The capital raise plan will help the bank in bridging Nigeria’s housing gap with tailored, trust-driven services.
The mortgage bank projects to deliver a 25 percent return on investment over the next year of capital injection.
The fresh capital injection will enable the bank scale its mortgage and related operations, increasing earnings to satisfy diverse stakeholders.
It also presents a compelling opportunity for investors looking to contribute to sustainable real estate development in Nigeria.
The target outcome of the 2025-2030 strategic plan of AG Mortgage Bank is to deliver the following key results: 20 percent year-on-year (YoY) growth on loans and advances to N35.4billion in 2028; and 25 percent YoY growth on Customer Deposits from N7.9billion as at December 31, 2023 to N24.4billion in December 2028.
The mortgage bank also projects 35 percent YoY growth on Gross Earnings from N3.24billion as at December 31, 2023 to N14.5 billion in December 2028 and 35 percent YoY growth on Profit Before Tax (PBT) from N702million as at December 31, 2023 to N3.15billion in year 2028.
With a proven track record spanning nearly two decades, AGMB offers a diverse portfolio of mortgage products tailored to meet the needs of low and middle-to-high-income individuals and businesses.
The bank’s commitment to eco-friendly practices and corporate social responsibility further enhances its appeal, aligning investments with positive societal impact.
With an asset base that has grown from N200 million to N23 billion over 19 years, AG Mortgage Bank Plc is well-positioned for further growth.
The proposed equity/debt investment will bolster AG Mortgage Bank Plc’s capabilities, enabling the bank to expand operations, enhance service offerings, and contribute to filling Nigeria’s housing deficit.
Leveraging IT Infrastructure and experienced workforce, AG Mortgage Bank Plc is well-positioned to capitalise on growth opportunities in the Nigerian Real Estate market. Investors can expect not only financial returns but also a meaningful contribution to sustainable development and community welfare.
AG Mortgage Bank Plc’s diverse revenue streams from interest income, fees, and other financial products, combined with efficient cost management, position the bank for sustainable profitability.
With nearly two decades of experience, AG Mortgage Bank Plc has consistently delivered exceptional mortgage services. The Bank’s seasoned professionals ensure a smooth and successful home financing process for its clients, earning it a reputation for reliability and trustworthiness.
With over 5 million members of the Assemblies of God Church, Nigeria as a captive market, AG Mortgage Bank Plc has a robust foundation for growth.
The bank’s collaborative approach with real estate developers, government agencies, and development finance institutions enhances its market reach and service offerings.
AG Mortgage Bank Plc offers a wide range of mortgage products tailored to different income levels and property goals, including tenant-owner mortgages, construction finance, commercial mortgages, and pension-backed mortgages.
The bank emphasises the use of eco-friendly materials and low-energy designs, aligning with strong environmental, social, and corporate governance (ESG) practices.
The bank’s streamlined mortgage processing, which is technology- driven and proven workflows, ensures a seamlessly efficient experience from start to finish.
Dedicated advisors guide AG Mortgage Bank Plc clients throughout their mortgage journey, ensuring timely and effective service.
By December 2030, AG Mortgage Bank Plc (AGMB) would have completed the restructuring of the Bank into a group of entities providing a full suite of housing finance-related services to AG Mortgage Bank customers, including: Mortgage Finance (Our Core Business), Housing Microfinance, Housing Development, Insurance, Brokerage Services, and Rental Housing Services.
AG Mortgage Bank will have raised a further N10billion equity capital, increasing the Bank’s Total Equity to N21.6billion by December 2030. Towards the pursuit of this goal, the bank will: Retain the services of reputable professional advisors who are familiar with the Bank’s business to anchor a Capital Raising Plan; Develop a capital raising plan including consideration for proposals to existing shareholders, PE Firms, Development Finance Institutions (DFIs) and potentially, an IPO.
The bank will as part of its growth strategy develop a robust online platform for mortgage applications, approvals, and customer service, making it easier for customers to access services. Also, the bank will progressively migrate the customer interface to an online platform.
AG Mortgage Bank will also develop a Strategic partnership with reputable Developers to offer mortgage financing as part of their home purchase packages, ensuring a steady pipeline of clients.
These are in addition to developing innovative new mortgage products to attract a wider range of clients, including offering personalised mortgage solutions that match individual customer needs and financial situations; and enhance AG Mortgage Bank operational efficiency to create headroom for cost competitiveness.
AGMB will also as part of its growth strategy explore partnerships with others to develop advanced credit scoring models to assess the creditworthiness of borrowers more accurately, enabling the Bank to lend to a broader range of customers.
In addition, the bank will enhance service capability to provide high-quality, responsive service to customers, building long-term commitment to the Bank and encouraging referrals.
AG Mortgage Bank will implement loyalty programmes or offer special incentives for existing customers who refinance their loans or refer new clients. The bank will explore the securitisation of the existing loan portfolio as mortgage-backed securities (MBS) to free up capital, allowing the Bank to issue more loans.
AG Mortgage Bank will be the leading enabler of green sustainable housing, with at least 40 percent of homes we finance achieving the IFC Edge or similar certification by December 2030.
Towards this goal, the bank will: establish a full ESG Capability/Team; develop AGMB Green Housing Certification Framework; develop a Strategic Partnership with a reputable Certifier, promote training and development for partners along the value chain, including architects, builders, etc.