Ghana Home Loans launches GH¢380m note programme

Ghana Home Loans says it has received approval from the Securities and Exchange Commission (SEC) to establish a Domestic Medium Term Note Programme for 380 million Ghana cedis.

This programme will enable Ghana’s 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 SEC’s approval fundamentally transforms Ghana Home Loans’ 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 Ghana Home Loans to introduce novel and exciting home loan products to the market thereby making home ownership possible for a greater number of Ghanaians.

Commenting on the SEC approval, Mr Dominic Adu, the Chief Executive Officer of Ghana Home Loans, 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 much needed support and guidance in securing all the necessary approval required to launch the notes programme.

He 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 would release the timeline for the issuance of the first tranche of notes under this programme.

Source: GNA