Ghana Home Loans set to increase liquid assets

Front view of Ghana Home Loans office.

Front view of Ghana Home Loans office.

The Ghana Home Loans (GHL) has been granted approval by the Securities and Exchange Commission (SEC) to establish a Domestic Medium Term Note Programme to enable the mortgage company to increase its liquid assets.

Under the programme the GHL would be able to access GH¢380 million from the domestic market.

It would also empower the leading home loans provider to issue mortgage-backed notes denominated in either US dollars or Ghana cedis and subsequently list them on the Ghana Alternative Market.

The approval comes at a time that the SEC is planning to allow the real estate industry a 100 per cent access to funds from the domestic bourse.

The SEC’s approval fundamentally transforms GHL’s funding ability making it possible for the home loans specialist to raise debt from pension funds, high net worth individuals, and other entities that specifically wish to invest in listed securities.

In turn, this new channel of funding would enable GHL to introduce novel and exciting home loan products to the market thereby making home ownership possible for a greater number of Ghanaians.

Commenting, Mr Dominic Adu, Chief Executive Officer of GHL, said: “this note programme is not only significant because of its size, it is the largest yet to come to the market, it is also significant because of its direct impact on home ownership, the pensions industry, the local debt capital market, and the real estate sector.

“It certainly opens new frontiers in the introduction of mortgage-backed securities to investors,” he said.

Mr. Adu expressed appreciation to the SEC and the Bank of Ghana for providing the support and guidance in securing all the necessary approval required to launch the notes programme.

According to the GHL, it would release the timeline for the issuance of the first tranche of notes under this programme in the coming weeks.

Transaction advisors, IC Securities, supervised the structuring process through to a successful completion.

Ghana Home Loans is a mortgage finance institution which operates under Bank of Ghana supervision as a non-bank financial institution.  At present, the company remains the only such institution that focuses exclusively on the provision of mortgage product

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