TrustBond Mortgage Bank lists shares on NASD
TrustBond Mortgage Bank Plc yesterday listed its entire issued share capital on the NASD Plc, paving the way for investors to trade on the shares of the mortgage bank on the over-the-counter (OTC) platform.
The Nation’s check yesterday indicated that about 10.95 billion ordinary shares of TrustBond Mortgage Bank was listed on the NASD at N1.20 per share, implying a starting market capitalisation of N13.13 billion for the mortgage company.
The NASD was formally launched on July 1 and opened for trading on July 2. Formerly known as the National Association of Securities Dealers, NASD is registered with Securities and Exchange Commission (SEC) as an over-the-counter (OTC) trading platform for unquoted securities; including equities and bonds.
TrustBond Mortgage Bank metamorphosed from the acquisition of Intercontinental Bank Plc by Access Bank and subsequent investment by a core investor group, Interrec into Intercontinental Homes Savings & Loan (IHSL).
TrustBond Mortgage Bank recently raised N500 million in new equity funds through a special placement, pushing the mortgage bank’s capital base to N5.2 billion, a notch above the N5 billion capital base for national mortgage banking operation. The new equity fund was raised from a core investor.
Chairman, TrustBond Mortgage Bank Plc, Mr. Etigwe Uwa, noted that the bank was the most capitalized mortgage bank in the country at N4.7 billion capital base but then needed to go for private placement to exceed Central Bank of Nigeria (CBN) requirements adding that this will put it in vantage position to run its business and increase shareholders’ profitability.
He said they decided on a core investor to provide fund urgently to meet the regulatory requirements of CBN.
On the future of mortgage banks in the country, Uwa predicted that there may be mergers and acquisitions to make the banks stronger.
He commended the current CBN regulations on mortgage banks noting that the policy will strengthen mortgage banks to give mortgages to prospective home owners as they will have more funds to lend to the public.
He however regretted that so much money is tied down in real estate and advised that capital should be channeled into more productive use as done in developed economies such as mortgage re-financing especially with the over 17 million housing deficit.
According to him, the low capital base of mortgage banks before had hampered the lending abilities of such banks to the public but now most banks that have met the capital target will be better positioned to give loans to prospective home owners.
Managing Director, TrustBond Mortgage Bank, Mr. Adeniyi Akinlusi said with the private placement of over N500 million the bank is positioned in playing in the big league to offer mortgages to Nigerians and be part of institutions that will bridge the housing gap in the country.
“In the light of our enlightened position and strength we have built 174 houses in Agege, undertaking construction and mortgage financing, provided mortgages for low income earners, adapt the newest technology in housing construction, work closely with developers and the Federal Housing Authority,” Akinlusi said.
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