AG Mortgage Bank Plc (AGMB) is presenting a compelling opportunity for investors by seeking to raise N10 billion in debt and equity funding. This capital injection is strategically designed to fuel the expansion of AGMB’s operations and enhance its delivery of efficient, eco-friendly mortgage solutions across Nigeria. The primary goal of this capital raise is to address the nation’s significant housing gap through tailored and trust-driven services, with a projected 25 percent return on investment anticipated within the first year of capital injection. The fresh capital will empower AGMB to scale its mortgage and related operations, thereby increasing earnings and satisfying a diverse range of stakeholders. This presents a particularly attractive prospect for investors keen on contributing to sustainable real estate development within Nigeria. What is AGMB’s strategic plan for growth? AGMB’s strategic plan from 2025 to 2030 outlines ambitious targets. These include achieving a 20 percent year-on-year growth in loans and advances, reaching N35.4 billion by 2028, and a 25 percent year-on-year growth in customer deposits, increasing from N7.9 billion in late 2023 to N24.4 billion by December 2028. Furthermore, the mortgage bank forecasts a 35 percent year-on-year increase in gross earnings, climbing from N3.24 billion in late 2023 to N14.5 billion by December 2028. Similarly, profit before tax (PBT) is projected to see a 35 percent year-on-year growth, rising from N702 million in late 2023 to N3.15 billion by 2028. With a robust track record spanning nearly two decades, AGMB boasts a diverse portfolio of mortgage products designed to cater to individuals and businesses across low, middle, and high-income brackets. The bank’s dedication to eco-friendly practices and corporate social responsibility adds another layer of appeal, aligning investment with positive societal impact. AGMB’s asset base has impressively grown from N200 million to N23 billion over 19 years, positioning it for substantial future expansion. The proposed equity and debt investment will significantly bolster AG Mortgage Bank Plc’s capabilities, allowing for operational expansion, enhanced service offerings, and a more substantial contribution to bridging Nigeria’s housing deficit. Leveraging its advanced IT infrastructure and experienced workforce, AGMB is ideally positioned to capitalize on the burgeoning opportunities within the Nigerian real estate market. Investors can anticipate not only attractive financial returns but also the satisfaction of contributing to sustainable development and community welfare. AG Mortgage Bank Plc generates diverse revenue streams from interest income, fees, and other financial products. Coupled with efficient cost management, these factors contribute to the bank’s sustainable profitability. For nearly two decades, AG Mortgage Bank Plc has consistently delivered exceptional mortgage services. Its seasoned professionals ensure a smooth and successful home financing process, solidifying its reputation for reliability and trustworthiness. AG Mortgage Bank Plc benefits from a captive market of over 5 million members of the Assemblies of God Church in Nigeria, providing a strong foundation for growth. The bank actively collaborates with real estate developers, government agencies, and development finance institutions, thereby expanding its market reach and service capabilities. AG Mortgage Bank Plc offers a wide array of mortgage products, including tenant-owner mortgages, construction finance, commercial mortgages, and pension-backed mortgages, catering to various income levels and property aspirations. A key focus for AGMB is the promotion of eco-friendly materials and low-energy designs, aligning with robust environmental, social, and corporate governance (ESG) practices. The bank’s streamlined, technology-driven mortgage processing and proven workflows ensure an efficient client experience from initiation to completion. Dedicated advisors guide AG Mortgage Bank Plc clients throughout their mortgage journey, ensuring timely and effective service delivery. By December 2030, AG Mortgage Bank Plc (AGMB) aims to restructure into a group of entities offering a comprehensive suite of housing finance-related services. This includes Mortgage Finance as its core business, alongside Housing Microfinance, Housing Development, Insurance, Brokerage Services, and Rental Housing Services. AG Mortgage Bank plans to raise an additional N10 billion in equity capital, increasing its total equity to N21.6 billion by December 2030. To achieve this, the bank will engage reputable professional advisors to anchor a Capital Raising Plan, which will explore proposals from existing shareholders, PE firms, Development Finance Institutions (DFIs), and potentially an IPO. As part of its growth strategy, AG Mortgage Bank will develop a robust online platform for mortgage applications, approvals, and customer service, enhancing accessibility. It will also progressively migrate its customer interface to this online platform. Furthermore, AG Mortgage Bank will forge strategic partnerships with reputable developers to offer mortgage financing as part of their home purchase packages, securing a steady client pipeline. This initiative is complemented by the development of innovative mortgage products to attract a wider client base, including personalized solutions tailored to individual needs and financial situations, and enhancements to operational efficiency for cost competitiveness. AGMB will also explore partnerships to develop advanced credit scoring models, enabling more accurate borrower assessment and lending to a broader customer segment. Additionally, the bank will enhance its service capabilities to provide high-quality, responsive service, fostering long-term customer commitment and encouraging referrals through loyalty programs and incentives for refinancing or new client referrals. AG Mortgage Bank will investigate the securitization of its existing loan portfolio into mortgage-backed securities (MBS) to free up capital for issuing more loans. AGMB is committed to becoming the leading enabler of green sustainable housing, with at least 40 percent of financed homes achieving IFC Edge or similar certification by December 2030. This involves establishing a full ESG capability team, developing an AGMB Green Housing Certification Framework, forging strategic partnerships with reputable certifiers, and promoting training for partners across the value chain, including architects and builders. This comprehensive approach positions AGMB as a leader in sustainable real estate finance in Nigeria.
