Ghana Home Loans launches GHC380m note programme

Ghana Home Loans PLC (“GHL”) has received approval from the Securities and Exchange Commission (“SEC”) to establish a Domestic Medium Term Note Programme (“DMTN”) for an amount of GHS 380,000,000 (or the equivalent of USD 100,000,000).

This programme will enable Ghana’s leading 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.

The Company

Ghana Home Loans is the leading home loans provider in Ghana and the only specialised residential mortgage finance institution in the country.

GHL was incorporated in 2006 under the Companies Act, 1963 (Act 179) to operate the business of mortgage financing in accordance with the Financial Institutions (Non-Banking) Law 1993, (PNDCL 328). Since inception it has funded over $150m home loans to over 2,500 households.