HFC increases stated capital

THE Home Finance Company (HFC) Limited has increased its stated capital by an additional ?18 billion from ?8 billion through the recent rights issue offered to its shareholders.

The move, which brings the company’s total stated capital to ?26 billion, is a prelude to the company’s efforts to raise over ?70 billion to qualify it to operate a commercial bank.

Shareholders’ funds as of November 30, 2002, have also increased to ?59 billion.Mrs Stephanie Baeta Ansah, Managing Director of the company, who spoke to newsmen in Accra yesterday, said the company has offered 20 million shares, for which two foreign financial institutions, the Union Bank of Nigeria and the International Finance Corporation (IFC), an affiliate of the World Bank, have expressed interest.

She declined to mention the value of the 20 million shares on offer because of on-going negotiations between the company and the Union Bank. She said the Union Bank has already indicated its intention to acquire all the 20 million shares but “we are yet to hear from the IFC”.

Mrs Baeta Ansah was optimistic that should the negotiations go through, the company will be able to raise more than the central banks’ requirement.She stated categorically that the decision of the company to go into commercial banking does not imply that it is moving away from its mortgage scheme.

Mr Godwin Ahabue Thompson Oboh, Group Managing Director and Chief Executive Officer of the Union Bank of Nigeria plc, said HFC is a viable company into which any investment made will not go waste.