29 May 2012

Kenya: Housing Finance Gets Sh850 Million Loan

Nairobi,Kenya — Housing Finance (HF) has signed a Sh850 million (USD10 million) bilateral term loan with the London-based Ghana International Bank PLC (GHIB), to support the firm's mortgage lending business.

GHIB is a niche London based Corporate Bank offering Correspondent Banking, Corporate Banking, Treasury Services, International Trade Finance and Transaction Services mainly to Financial Institutions and Corporate entities across Africa.

Housing Finance Managing Director Frank Ireri said the firm will continue to tap affordable international funds to accelerate growth and reduce operating costs.

"We have broadened our funding base to include affordable international finance to sustain growth of our mortgage business," said Ireri.

GHIB's Managing Director and CEO, Joe Mensah said the loan will enable Housing Finance offer affordable mortgages for its middle to lower income target market.

"The renewed interest in low and middle-cost housing by both the public and private sectors will lead to an increase in demand for mortgage facilities in the country," said Mensah.

Housing Finance recently signed an international financing agreement for Sh2.2 billion with the European Investment Bank (EIB), for funding eligible SMEs in the construction industry.

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