AG Mortgage Bank Plc (AGMB) has launched its Series 2 and Series 3 Commercial Paper issuance, seeking to raise up to ₦3.97 billion under its existing ₦5 billion Commercial Paper Programme.
The offer, arranged by AIICO Capital Limited, opened on June 11 and is scheduled to close on June 18, 2026, providing investors with an opportunity to participate in the funding plans of one of Nigeria’s longest-established primary mortgage banks.
The fundraising comes as the bank reports its strongest earnings performance in recent years, driven by growth in mortgage financing activities and an expanding loan portfolio.
Profit More Than Doubles
AG Mortgage Bank delivered a sharp improvement in profitability in the 2025 financial year.
Interest income rose by 28.1 percent to ₦3.65 billion from ₦2.85 billion in 2024, reflecting increased lending activity and stronger mortgage financing operations.
Net interest income increased to ₦2.21 billion, while operating profit climbed to ₦1.39 billion from ₦729.12 million a year earlier.
Most significantly, profit after tax surged by 130 percent to ₦1.05 billion, compared with ₦458.7 million in 2024.
The performance highlights the growing role of specialised housing finance institutions in Nigeria’s financial sector despite persistent challenges in the country’s mortgage market, including high interest rates, inflation and affordability constraints.
Two Decades in Nigeria’s Mortgage Market
Established in July 2004 and licensed by the Central Bank of Nigeria the same year, AG Mortgage Bank commenced operations in 2005 with a focus on expanding access to mortgage finance for Nigerians both at home and in the diaspora.
The institution has grown its asset base from approximately ₦200 million at inception to more than ₦33 billion, reflecting its steady expansion within Nigeria’s housing finance industry.
Originally known as AG Homes Savings & Loans, the company became a public limited liability company following a private placement in 2007 and adopted its current name, AG Mortgage Bank Plc, in 2015.
Key Player in Government Housing Programmes
AG Mortgage Bank has built a strong position within Nigeria’s mortgage ecosystem through its participation in several government-backed housing finance initiatives.
The bank is accredited by the Federal Mortgage Bank of Nigeria (FMBN) to access funds under the National Housing Fund (NHF) Scheme, which provides subsidised mortgage financing to eligible Nigerians.
It has also been an active participant in the Family Homes Funds programme and the Mortgage Refinancing and Expansion Intervention Facility (MREIF), both designed to improve access to affordable housing finance.
According to information provided to investors, AG Mortgage Bank was the first primary mortgage institution accredited under some of these intervention programmes, the first to receive disbursements, and the first to access initial funding tranches, highlighting its operational readiness and execution capability.
Digital Expansion Strategy
Alongside its traditional mortgage business, the bank has expanded its digital banking capabilities through AG Sprint, a platform designed to support deposits, transfers, payments and mortgage-related banking services.
The platform integrates with payment channels such as Quickteller, PayDirect, point-of-sale terminals and direct debit systems, allowing customers to access banking services through digital channels while maintaining a focus on housing finance products.
The bank offers a range of services including residential mortgages, tenant-ownership schemes, construction finance, savings products and investment instruments.
Investor Interest in Financial Institutions
The issuance reflects a broader trend of Nigerian financial institutions increasingly using the commercial paper market to diversify funding sources and raise short-term capital outside traditional deposit funding.
For investors, AG Mortgage Bank’s improving profitability, growing asset base and participation in government-backed housing programmes may enhance the attractiveness of the offering, particularly as demand for fixed-income instruments remains strong in Nigeria’s high-interest-rate environment.
The offer is being issued under the bank’s ₦5 billion Commercial Paper Programme and represents the latest step in AG Mortgage Bank’s strategy to strengthen its funding base while supporting further growth in mortgage lending and housing finance activities.
