Use our pull-down menus to find more stories
  


OR subscribers use AllAfrica's premium search engine


Click here to read or make comments on this topic »

Kenya: HF Launches Rights Issue Amid Rising Competition


 

Email This Page

Print This Page

Comment on this article

Visit The Publisher's Site

Business Daily (Nairobi)

14 May 2008
Posted to the web 14 May 2008

Housing Finance (HF) today launches its long -awaited rights issue at a time when the mortgage financier's turnaround strategy comes in the spot light in the wake of cut- throat competition and shrinking revenues.

Kenya's leading mortgage lender will go ahead with a Sh2.3 billion share sale later this month and is today expected to release the details of the offer and a timetable of events for the rights issue.

A successful rights issue will clear the way for HF to take as much as twice its current deposits, effectively increasing its lending to meet the rising demand for mortgage loans.

With the Central Bank requiring financial institutions to have at least a shilling of capital for every Sh12.5 in deposits, Housing Finance will hope the new foundation will give it a wider threshold for mortgage arrangements.

The CBK also bars institutions from lending above eight per cent of their core capital.

HF's financial reports indicate that the company was only one per cent above the statutory minimum allowing it to take up more customer deposits or loans with less than one per cent above the allowable minimum fraction of the core capital it could lend out.

Relevant Links

The company's liquidity ratio was also at the minimum statutory requirement of 20 per cent.With such an outlook, HF is in dire need of a way to build its capital base for its expansion plan, analysts say.



AllAfrica aggregates and indexes content from over 125 African news organizations, plus more than 200 other sources, who are responsible for their own reporting and views. Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica.

 
Share this on:
Facebook
Digg
Del.icio.us
StumbleUpon
Muti


Copyright © 2008 Business Daily. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections -- or for permission to republish or make other authorized use of this material, click here.

Make allAfrica.com your home page | RSS Feed

Top | Site Guide | Who We Are | Advertising | Search | Subscribe

Questions or Comments? Contact us. Read our Privacy Statement.

HOME
allAfrica.com


Relevant Links




Countries Must Plan Road Map for eHealth
Trade Union Warns of Even Bigger Strike
Govt Runs Out of Paper to Print Money
Petrol Corporation Denies Paying Militants
Delta Militants Issue Ultimatum, Deny NNPC Payoff





Today's Most Active Stories