Today's Headlines
- Lessons and Implications of the Confirmation of Charges Against Kenya's 'Ocampo Four'
- Finance Minister Quits Over ICC Charges
- Shortage of HIV Test Kits Raises Concerns
- Living On the Edge in Turkana Region
- Ali Breaks Silence, Describes Delight At Acquittal
- Uhuru, Ruto Eligible for Presidency - CIC
- Tea Sector Posts Record Earnings in 2011
- Resettle IDPs, Urges Annan
- Uhuru, Muthaura Have Done the Right Thing
- All Displaced People Should Return Home
- Concern Raised As Parents Shun Schools in Poll Violence Hotspots
- Ruling On IEBC Hiring in February
- Country Working Towards Conditions Needed for Direct Flights to U.S.
- How ICC Claimed Kibaki's Lieutenants
- Geothermal Project to Receive Sh10 Billion Funding Boost
- Five Million to Get IDs Before Elections
- Speed Up Building Port
- Uhuru and Muthaura Did Well to Quit Posts
- A Full Plate Awaits Githae
- Clashes Continue in Moyale
- Baraza Case to Be Heard Monday
- Two Firms in Joint Venture to Drill for Oil Near Lodwar
- Exit Uhuru, Muthaura
- ICC Charges Hound Uhuru Out of Treasury
- Consumers Grow Despite Inflation
- Poor Relations Between Banks Blamed for Cash Shortages
- Fish Prices Up As Vegetable Supply Dwindles
- Consumers to Pay More for Milk and Bread As Prices Rise
- Kibaki Tasks Ex-Dar CJ to Lead Probe in Kenya
- Mombasa Port Cargo Congestion Forces Three-Month Fees Waiver
31 August 2010
Nairobi — The Capital Markets Authority (CMA) has approved the issue and listing of Sh10 billion Medium Term Note (MTN) by Housing Finance.
In a letter signed by CMA CEO, Ms Stella Kilonzo, the regulator states its satisfaction with Housing Finance's application and full disclosure of material information in accordance with the requirements of the Capital Markets Act.
This follows an earlier approval from the Central Bank of Kenya (CBK), which indicated no objection to the issuance of the medium note.
The approval means that Housing Finance can now embark on the MTN programme that enables the company to offer debt securities on a regular and/or continuous basis.
According to HF's Managing Director, Mr Frank Ireri, the MTN programme is part of the plan to source long term funding to bolster its growth of business in form of mortgages and property financing.
"The approval and consequent listing will provide the requisite financial gearing to enable Housing Finance play an integral role in helping boost the available supply of units with a number of major projects already in the pipeline" he said.
The approval by CMA is seen as a boost the mortgage financing industry as it seeks to benefit from the growing demand for housing in urban and rural areas.
The current demand is estimated at 150,000 units per annum with supply estimated at 35,000 units.
With such a massive supply gap, the private sector is expected to play a critical role in meeting the shortage.
Equally, there exists a huge funding gap as demonstrated by statistics from the CBK that show that lending by commercial banks and mortgage finance institutions to the sector as at the end of 2009 was Sh9.2bn while the private sector approvals to put up properties by the City Council in the year 2009 was valued at Sh77bn.
In the coming weeks, the mortgage financier is expected to issue its final information memorandum and a pricing supplement that will provide requisite guidance to investors in respect to each proposed tranche.
The company has already named Standard Chartered Bank Limited and NIC Capital Limited as the joint lead arrangers for the program.
