15 November 2012

Kenya: HF Bond Debuts at NSE

Housing Finance has re-introduced part fixed mortgages to grow its business after acquiring long term capital from the just concluded bond issue.

The bond issue raised over Sh5 billion against a target of Sh2.9 billion, a 78 per cent over subscription. "The introduction of part fixed mortgages is expected to cushion customers from interest rate fluctuations during uncertain times," said Housing Finance chairman Steve Mainda.

The mortgage firms' Sh3 billion bond started trading at the Nairobi Securities Exchange yesterday. The mortgage financier is targeting the lower and middle income segments of the market where there is an acute housing shortage. Mainda said they are looking for ideas to create a mix of affordable funding options for the business.

Nairobi Securities Exchange Chairman, Eddy Njoroge asked Housing Finance to lead the market by seeking more long term capital through issuing mortgage backed securities, using mortgage loan book as the underlying assets. Njoroge also urged the Central Bank of Kenya to facilitate the issuance of asset backed securities by commercial banks.

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