Ibrahim Shuaibu in Dutse
AG Mortgage Bank Plc has raised N3.97 billion through its Series 2 and 3 Commercial Paper (CP) issuance as the offer recorded 100 per cent subscription, underscoring strong investor appetite for the mortgage lender’s short-term debt instruments.
The CP issuance was conducted under the bank’s registered N5 billion CP Programme, with the offer opening on June 10 and closing on June 18.
The Series 2 and 3 notes have tenors of 270 days and 364 days respectively, with 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 proceeds will be deployed towards the bank’s short-term working capital and funding requirements, supporting its mortgage financing activities and real estate pipeline.
Commenting on the successful issuance, Managing Director and Chief Executive Officer, AG Mortgage Bank, Ngozi Anyogu, said the full subscription reflected investors’ confidence in the bank’s governance standards and long-term strategy.
“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,” he said.
Anyogu added that the funds would strengthen the bank’s liquidity and enable it to deepen mortgage financing.
“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,” he said.
The successful CP issuance comes on the back of improved financial performance by the bank in 2025.
For the year ended December 31, 2025, interest income rose 28.1 per cent to N3.65 billion from N2.85 billion in 2024, while net interest income increased to N2.21 billion.
Operating profit also rose to N1.39 billion from N729.12 million, while profit after tax more than doubled by 130 per cent to N1.05 billion from N458.7 million in the previous year.
Established in 2004 and licensed by the Central Bank of Nigeria, AG Mortgage Bank has grown its asset base from about N200 million at inception to over N33 billion.The bank is accredited by the Federal Mortgage Bank of Nigeria to access the National Housing Fund and participates in government-backed housing initiatives, including the Family Homes Funds programme and the Mortgage Refinancing and Expansion Intervention Facility.
It offers mortgage, construction finance, savings and investment products, alongside digital banking services through its AG Sprint platform.