Ghana Home Loans PLC has received approval from the Securities and Exchange Commission (“SEC”) to establish a Domestic Medium Term Note Programme (“DMTN”) for GHC 380,000,000 (or the equivalent of US$100,000,000).
This programme will enable the home loans provider to issue mortgage-backed notes denominated in either USD or GHS and subsequently list them on the Ghana Alternative Market (“GAX”).
The SEC 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.
This new channel of funding in turn enables GHL to introduce novel and exciting home loan products to the market thereby making homeownership possible for a greater number of Ghanaians.
Commenting on the SEC approval, Dominic Adu, CEO of Ghana Home Loans, said that “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.”
He expressed his appreciation to the SEC and Bank of Ghana for providing the much needed support and guidance in securing all the necessary approvals required to launch the note programme.
Mr Adu also congratulated the transaction advisors, IC Securities, for their efforts in seeing the structuring process through to a successful completion.
In the coming weeks, Ghana Home Loans will release the timeline for the issuance of the first tranche of notes under this programme.
Source: B&FT Online