Namibia Mortgage Acceptance Corporation Announces Filing of 506(c) to Raise Funds for the Namibian Mortgage Market
Africa Growth Corporation subsidiary seeks to raise $250 million to accelerate the privately funded affordable housing mortgage market in sub-Saharan Africa
[New York, NY, April 10, 2017] – Namibia Mortgage Acceptance Corporation (“Namibia MAC”), a subsidiary of Africa Growth Corporation (OTC: AFGC), today announced its intention to launch a Regulation D (506(c)) offering with the U.S. Securities and Exchange Commission (SEC). The purpose of the offering is to secure funds through accredited investors to facilitate access to financing solutions and promote sustainable, responsible homeownership for middle income, and emerging middle-income government workers in Namibia. Namibia has maintained an investment grade sovereign credit rating according to Moody’s and Fitch since 2005.
Namibia MAC will seek to place a $250,000,000 bond program in initial tranches to accredited investors to match the monthly mortgage funding demand in Namibia. The Company expects to return to investors an initial annual yield of approximately 9 percent in US Dollars, passed through from the underlying Namibian mortgages that are created. The Company anticipates the bonds to be repayable in 2024, with a minimum investment of $10,000, and an intended listing on the New York Stock Exchange post placement.
In addition to asset-backed protection, the mortgages receive significant financial support from the Government of Namibia through a program offered exclusively to its employees. The Namibian government withdraws mortgage payments directly from the mortgage payers’ paychecks -- though not more than 33% of their gross income -- so investors can have confidence in the mortgage repayment process. Namibia MAC’s bond offering will be syndicated to broker dealers across the U.S and internationally. The offering will also be made available through the Company’s website www.namibiamac.com, where the Private Placement Memorandum and Accredited Investor Questionnaire will be located.
Nambia MAC estimates that the sub-Saharan Africa mortgage finance shortage is a $2 trillion market opportunity. Currently only 2 percent of Sub Saharan African families have mortgages today. The current market demand in Namibia alone necessitates the immediate creation of approximately 300,000 mortgages (equating to a financing volume of $10 billion to $15 billion). Furthermore, with a rapidly growing population and a robust urbanization rate of 4.43 percent, demand for affordable housing in Namibia is expected to remain strong for the foreseeable future.
“Though the scale of the housing shortage is considerable, we expect to raise a significant portion of the necessary capital over time through continual NYSE bond offerings, acting as a seamless conduit for capital to flow between Wall Street and a wide variety of countries in Sub-Saharan Africa,” said Christopher Darnell, Chairman, Africa Growth Corporation. “This initial offering will be the first step of many to provide meaningful private financing solutions to Namibia and the broader sub-Saharan mass housing market.”
“We believe that this is an excellent opportunity to help resolve a massive social problem while generating significant revenue and value for our bondholders and shareholders. To provide some perspective of the scale of the market opportunity we are addressing, the mortgage on a single office tower, (9 West 57th Street in New York City) is reported to be $1.2 billion, which is more than all the mortgages that exist in Angola, Cameroon, Mozambique, Uganda, Zambia and Zimbabwe combined -- representing a combined population of nearly 150 million people. The scale of human suffering we seek to alleviate by enabling the creation of affordable and proper housing conditions, in perfect correlation with the commercial and profit-driven opportunities available by financing the required mortgages, can only be described as a historic opportunity.” said Christopher Darnell, Chairman, Africa Growth Corporation.
To learn more about the Company and the investment opportunity, please visit www.namibiamac.com
Namibia Mortgage Acceptance Corporation
Namibia Mortgage Acceptance Corporation. was formed as a special purpose wholly-owned subsidiary of Africa Growth Corporation. (AFGC) to provide mortgage finance to Namibia.
AN INVESTMENT IN NAMIBIA MORTGAGE ACCEPTANCE CORPORATION (Namibia MAC) MAY ONLY BE MADE IN ACCORDANCE WITH, AND FOLLOWING REVIEW OF, A CONFIDENTIAL PRIVATE PLACEMENT MEMORANDUM. THIS INFORMATION IS NOT MEANT TO REPLACE OR SUPPLEMENT THE CONFIDENTIAL PRIVATE PLACEMENT MEMORANDUM AND DOES NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO PURCHASE SECURITIES. THIS INFORMATION IS FOR THE PURPOSE OF FAMILIARIZING YOU WITH A POTENTIAL OFFERING BY THE COMPANY. ANY INVESTMENT IN THE COMPANY WILL BE LIMITED TO ACCREDITED INVESTORS AND QIBs, AS SUCH TERM IS DEFINED IN RULE 501(a) OF REGULATION D UNDER THE SECURITIES ACT OF 1933, AS AMENDED.
Information in this document constitute forward-looking statements or statements which may be deemed or construed to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The risks, uncertainties and other factors are more fully discussed in the Company’s filings with the U.S. Securities and Exchange Commission. All forward-looking statements attributable to Africa Growth Corporation herein are expressly qualified in their entirety by the above-mentioned cautionary statement. Namibia Mortgage Acceptance Corporation, Inc. disclaims any obligation to update forward-looking statements contained in this estimate, except as may be required by law.
Released April 10, 2017