Corporate News
Housing Finance Managing Director Frank Ireri at a past investor
briefing. HF will use the loan for onward lending to the lower end of
the mortgage market. PHOTO | FILE
NATION MEDIA GROUP
By JOHN GACHIRI
In Summary
- The Sh1.8 billion loan is the second such facility from the London-based bank, the first being a Sh850 million loan that was advanced in 2011.
Housing Finance
(HF) has received a Sh1.8 billion loan from Ghana International Bank
PLC (GHIB) for onward lending to the lower end of the mortgage market.
The Sh1.8 billion loan is the second such facility from the London-based
bank, the first being a Sh850 million loan that was advanced in 2011.
GHIB said that since the funds have been sourced from the
international market, HF will be able to get the money at a lower rate.
The loan terms were not disclosed.
“The loan will enable Housing Finance grow its
mortgage business to its targeted customer base at an affordable cost
given the arbitrage opportunity that funding from the international
capital markets present,” said GHIB chief operating officer Andrew Kairu
in a statement.
Housing Finance chief executive Frank Ireri said
that the loan will go to onward lending to the mid and lower segment of
the property market. The listed mortgage lender has in the past
classified the low and mid-market as having houses priced at between
Sh1million and Sh10 million.
HF has previously sourced funds from other foreign
lenders such as the International Finance Corporation (IFC). In 2013 it
signed a Sh1.6 billion loan with the IFC also for onward lending.
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