Haldane McCall plans N250bn bond to fund affordable houses

…Decries crowding out of funds by FG

By Peter Egwuatu

Haldane McCall Plc, has disclosed plans to float a N250 billion bond to provide affordable houses for Nigerians, amid a growing housing deficit.

The Group Managing Director Dr. Edward Akinlade, revealed this to Vanguard, weekend,  during a media chat in Lagos, noting that the company aims to raise N250 billion, with N75 billion being the first phase.

“We’ve announced our plans to the capital market, but we need Securities and Exchange Commission, SEC approval and a credit rating, which is taking time,” Akinlade said. The company’s market capitalisation currently ranges between N14 billion and N16 billion, following its listing on the Nigerian Exchange eight months ago.

Akinlade lamented the high cost of borrowing from financial institutions, attributing it to high inflation and naira devaluation.

 “The federal government is borrowing at exorbitant rates, leaving little for businesses.

“The Central Bank of Nigeria, CBN, some days ago borrowed over N1.5 trillion at 23.5% interest rate, making it challenging for companies like ours to access affordable funding.

But I know what is driving that interest rate is inflation.

But if the federal government itself is borrowing at those high levels, through the CBN, then there’s nothing left for the private sector. And that is where the advantage of the capital market is. Because the capital market is mainly equity driven, although bond also.

We have to price our bond higher. And that will obviously, based on what CBN has done now, we have to price our bond higher than this. Because our own bond would be more riskier than the federal government”.

While commenting on the housing deficit in the country, he said: “The housing deficit in Nigeria is estimated to be around 25 million units, with Lagos being a major hub”.

Akinlade emphasized the need for affordable homes, stating, “Unless we invest aggressively in affordable homes, people will struggle to find places to live.

Haldane McCall plans to utilize the bond proceeds to expand its hospitality and real estate sectors.

 “The hotel market in Lagos is huge, and we believe we can grow our hotel business with the right investments”.

He further emphasized that  the company aims to leverage the capital market to raise funds, despite the challenges posed by high interest rates. “Our bond will likely be priced higher than the federal government’s due to the associated risks,” Akinlade noted.

“With the right funding, Haldane McCall is poised to make a significant impact in the Nigerian real estate sector and provide much-needed affordable housing for Nigerians” he added.

In her remarks, the Deputy Group Managing Director, Abiola Elugbaju, reaffirmed the company’s commitment to bridging Nigeria’s housing gap through innovative partnerships and sustainable investment strategies, adding “At Haldane McCall, we are not just building houses; we are building communities and long-term value for investors.”