Mortgage company, Ghana Home Loans has told Citi Business News it has secured a 22.5 million dollars loan facility for on-lending to Ghanaian home owners.
The move is also to meet the increasing demand for mortgages in the country.
The facility is arranged by the Netherlands Development Finance Company (FMO) in syndication with European Financing Partners (EFP).
European Financing Partners is contributing about 12.5 million dollars representing a little over 50 % of the total facility amount.
This comes barely a month after the Securities and Exchange Commission (SEC), approved a 380 million cedis Domestic Medium Term Note Programme for Ghana Home Loans to increase the cash flow of the company.
Commenting on the latest move, the Chief Operations Officer of Ghana Home Loans, Kojo Addo-Kufuor, told Citi Business News the facility confirms the investor confidence in the company and the economy.
“This is a new line of credit so it allows us to issue more loans and create more home owners. It is also a vote of confidence in the company because we are getting credit from an institution that knows us very well and has been doing business with us since our company’s inception and this time they did not come alone but they brought a club of lenders along. This is also another big vote of confidence in the economy of Ghana,” he said.
Kojo Addo-Kufuor added, “The credit extended to us is fairly competitive as they are commercial loans not grants; it is just that we have the best of repayment periods which are hard to come by on a commercial loan like this on the market,
“On the money market you may have to pay back a loan given you in just 3 years but we were able to secure this with a repayment period of 10 years which means you must take a long term view on the counter party and also on the economy that you operate. This is because we just don’t look at the interest rate but the repayment period is a factor as well.”
By: Norvan Acquah-Hayford/citibusinessnews.com/Ghana