Family Homes Funds (FHFL) is a quasi-government entity owned by the federal government of Nigeria, through the federal Ministry of Finance and the Nigeria Sovereign Investment Authority. FHFL is the largest housing fund in sub-Saharan Africa, focused on affordable homes for low-income families in Nigeria.
FHFL is a social housing initiative promoted by the federal government of Nigeria as part of its Social Intervention Programme with a long-term plan to invest up to NGN1.3 trillion (US$2.81 billion) in the development of 500,000 affordable homes nationwide, and in the process, create up to 1.5 million jobs.
FHFL is in line with the New Urban Agenda and the UN SDGs of promoting sustainable cities and communities; reducing poverty; promoting good health and well-being and economic growth; and reducing inequalities. It aims to match the NGN500 billion (US$1.08 billion), ie NGN100 billion (US$216.11 million) annual commitment from the federal government of Nigeria over the next five years with additional capital raised through partnerships with private investors and development finance institutions.
Greenwich Merchant Bank recognizes the pivotal role that decent and affordable accommodation plays in the overall development of Nigeria, hence its support for this project.
Greenwich Merchant Bank remains committed to projects, initiatives and programs that improve the socioeconomic position of Nigerians. Correspondingly, FHFL’s Sukuk issuance for affordable housing for low-income families, with job creations on the sidelines, aligns with its overarching business strategy.
The FHFL’s NGN10 billion (US$21.61 million) Sukuk Ijarah Series I under the NGN30 billion (US$64.83 million) Sukuk Issuance Programme was oversubscribed to the tune of NGN21.3 billion (US$46.03 million). The follow-on NGN20 billion (US$43.22 million) Series II issuance was also fully subscribed.
Greenwich Merchant Bank Managing Director Bayo Rotimi noted that: “Our role as a joint issuing house in Family Homes Funds’s Sukuk Issuance Programme further validates our dedication to financial innovation, strengthening the capital markets and supporting projects that enhance the socioeconomic wellbeing of Nigerians. We are very excited about what the future holds as we position with renewed zeal to collaborate with private and public sector institutions to deliver value to Nigerians.”
About Greenwich Merchant Bank
Greenwich Merchant Bank acted as the joint issuing house and assisted Family Homes Funds in the first-ever corporate Sukuk issuance registered by the Securities and Exchange Commission in Nigeria.
Greenwich Merchant Bank is a preeminent merchant bank in Nigeria owned by reputable corporate and private investors. Incorporated in February 1992 as Greenwich Trust, the company commenced operations in June 1994, providing investment banking, debt and equity market advisory services.
Following the receipt of its merchant banking license from the Central Bank of Nigeria, the erstwhile Greenwich Trust subsequently transitioned into a merchant bank. This transition was propelled by the need to provide direct funding solutions to our clientele operating across the various economic sectors.
Our solutions include corporate banking, private banking, investment banking, asset and wealth management, treasury and global markets, as well as securities trading.
As an institution focused on delivering cutting-edge, innovative solutions to both private and public sector organizations, we have so far provided financial advisory services to well over 20 of the 36 state governments in Nigeria and have also remained at the forefront of financial innovation by catalyzing economic advancement and financial inclusion through our diverse roles in various Sukuk programs.
In 2022, Greenwich Merchant Bank provided advisory services to the federal government of Nigeria, through the Debt Management Office, in the federal government of Nigeria’s NGN100 billion Series V Sukuk issuance which was upsized to NGN130 billion (US$280.94 million) following a subscription level of 166%.
|Summary of terms & conditions
|Family Homes Sukuk Issuance Programme
|Family Homes Funds
|Joint issuing house
|Greenwich Merchant Bank
|‘BBB+’ (GCR) ‘Bbb’ (Agusto & Co)
|‘BBB+’ (GCR) ‘A+’ (Agusto & Co)
|NGN30 billion (US$64.83 million)
|Fixed rate Sukuk
|Sukuk Ijarah trust certificates
|Semi-annually in arrears for the life of the Ijarah
|Amortized principal repayment over the life of the Ijarah
|Use of proceeds
|To finance and develop affordable homes for low-income households
|Nigeria Exchange and/or FMDQ Securities Exchange
In the same period, the bank acted as the lead issuing house to TAJBank in its NGN100 billion Sukuk Mudarabah Issuance Programme. TAJbank’s NGN10 billion Series I issuance achieved a subscription level of over NGN11.4 billion (US$24.64 million). The Sukuk Mudarabah issuance, the first of its kind in Nigeria, provided the bank with additional Tier 1 capital to strengthen its capital adequacy ratio and financial intermediation activities.
In 2021, Greenwich Merchant Bank, alongside other advisors, assisted the federal government of Nigeria to successfully raise NGN250 billion (US$540.27 million) in the FGN Sukuk Series IV, which is so far the largest Sukuk issuance in the history of Nigeria. The Sukuk IV issuance elicited significant interest from both retail and institutional investors resulting in total subscriptions in excess of NGN840 billion (US$1.82 billion), of which NGN250 billion was allocated.
Greenwich Merchant Bank is headquartered in Lagos, Nigeria and leverages people, processes and systems to provide financial solutions to clients across multiple sectors in Nigeria.
The bank is currently rated ‘BBB’ by both Agusto and GCR.