The Securities and Exchange Commission has granted an approval to Ghana Home Loans to establish a Domestic Medium Term Note Programme in a bid to increase the cash flow of the mortgage company.
The programme will allow Ghana Home Loans access 380 million cedis from the domestic market.
It will also enable Ghana Home Loans issue mortgage-backed notes denominated in either dollars or cedis and subsequently list the company on the Ghana Alternative Market.
The approval also comes at a time that the Securities and Exchange Commission is initiating plans to allow the real estate industry a hundred percent access to funds from the domestic bourse.
Ghana Home Loans is expected to release issue a timetable for the issuance of the first tranche of notes under the program, in the coming weeks.
Commenting on the approval, the Chief Executive Officer of Ghana Home Loans, Dominic Adu, said, “This note programme is not only significant because its size – it is the largest yet to come to 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.”
IC Securities is providing the transaction advice for the program.
Source: citibusinessnews