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China finance house to invest $6billion in Nigeria’s housing sector

By on May 27, 2013

China Export and Credit Insurance Corporation,SINOSURE,and International Commercial Bank of China,ICBC, are set to invest about N948 billion (about $6 billion) in Nigeria’s Housing Sector.

Managing Director of the Federal Mortgage Bank of Nigeria, Gimba Ya’u Kumo, while speaking at a Media Round-Table organised by the Nigeria Union of Journalists,NUJ, in Abuja, said the development was as a result of efforts to attract foreign investors into the capital-intensive sector.

He disclosed that FMBN has opened discussions with the two investment groups to secure financing of about $6 billion at single digit loan facility aimed at developing the sector.

According to him, the loan which would be given directly to Chinese Construction companies in the country has 15 to 20-year tenure, for disbursement in tranches of $1.5 billion to build houses under the supervision of the FMBN.

Yau’ Kumo said his bank’s responsibility in the housing project will include creating mortgages, collecting mortgage repayments and using the proceeds of the repayment to pay back the loan over the tenure facility.

“As we speak now, a team of the Chinese SINOSURE/ICBC is visiting the country following the series of discussions we had with them in the past and in furtherance of our business Expansion drives to encourage private sector involvement in the development of the sector.

“Apart from these Chinese companies, we are also discussing partnership with Globus Financial Services LLC of the United States to access a US$1 billion 10-year facility to finance affordable houses and infrastructure. The pilot scheme will involve the FMBN to fund off-takers considered for some Federal and state Governments institutions.

He listed the institutions that are targeted to benefit from the scheme as, the Nigeria Police, $100 million; the Federal Road Safety Corps, $50 million; Nigerian Air Force, $50 million; Nigerian Civil Defence Corps, $50 million; and Federal Ministry of Education, $50 million. The states to benefit from the financing window are: Bayelsa, Nasarawa, Rivers, Ekiti, Ogun, Osun and Kano, each of which will access $50 million.