PROPERTY NEWS

The Federal Government has given its consent and approval to ongoing negotiations between the Federal Mortgage Bank of Nigeria (FMBN) and HSBC Bank to source one $1.5 billion (about N225 billion) from the International Capital Market through Euro medium to long term issuance facility.

Minister of Works 'Housing and Urban Development 'Dr. Hassan Muhammad Lawal 'made the disclosure last week in Abuja when he received the FMBN board led by its chairman 'Deda Attah 'along with representatives of HSBC.

He assured the bank officials and other foreign investors that whatever investment they made in Nigeria was in the right place and at the right time. He noted that peace had returned to the Niger Delta.

Lawal stated that the deal between the FMBN and HSBC was a major breakthrough which would ensure the inflow of international financing from the international capital market for housing delivery in Nigeria. He added that it was a confirmation of "the promise of Mr. President that infrastructure is one of the cornerstones of his administration."

He added '"I reiterated this when I was inaugurating your board. I want to reaffirm that this government will do all within its powers to create the enabling environment 'whereby funds will be made available within a limited short period of time 'so that people can build their houses. You don 't have to wait for government to build your house for you. The promises the president made during his electioneering campaign are now coming to pass. Nigeria has the largest market in Africa. Nigeria has the largest population in sub -Saharan Africa ;Nigeria is the largest black nation on earth. We are one of the most viable countries on the continent of Africa 'not only in terms of population 'but in terms of natural resources. Needless to say 'we are the sixth or seventh largest producer of oil in OPEC. Please be focused and rest assured that whatever investment you make in Nigeria is in the right place and at the right time. Nigeria is a very peaceful country. Investors are welcome. You will never regret coming into the country."

FMBN Managing Director 'Mr. Abdulsalam Ahmed 'disclosed the bank had met in London previously to negotiate with HSBC on the loan facility 'and that the negotiations had reached advanced stages. He stated that the facility was a platform that would enable the FMBN to issue bonds on a regular basis 'and more efficiently. He said the HSBC and the FMBN had actually looked at what was happening at the international capital market 'and observed that investors were now running away from illiquid 'riskier and rated investments 'and moving towards high profile sovereign debts. He said the deal with HSBC was an opportunity for the FMBN to access the international capital market 'and this would link the local capital market with the international capital market.

Atta stated that the board was aware of the efforts and concerns of the Federal Government to make the FMBN the primary mortgage institution charged with housing delivery in Nigeria. He said this necessitated the board 's decision to exploit other sources of funding. He stated that HSBC was one of the largest and reputable financial institutions in the world. He said the negotiations had reached advanced stages 'and thanked the minister for his continuing support for their plans and efforts.

Leader of the HSBC delegation 'Mr. Hadiz 'thanked the minister for the opportunity afforded them to work closely with the FMBN. He said their deal would provide the FMBN a platform for its growth as the primary mortgage provider in Nigeria.

On the FMBN delegation were: Deda Attah - Chairman 'Mr. Abdulsalam Ahmed - MD 'Kabir Maiwada - Executive Director 'Wemi Osunde - Executive Director 'Mr. Newman Ordia - Executive Director 'Mr. Abubakar Kabir - Executive Director 'Mr. Muhammad Magaji Bello - Executive Director and 'Mrs. Ngozi Ike - Executive Director.