Mr Steve Mainda, the Housing Finance chairman. FILE PHOTO
Housing Finance has ventured into the corporate lending market while deepening its retail banking presence with the twin moves seen as a diversification from the core mortgage business.
The company disclosed in its rights issue information memorandum that it recently lent Sh90 million to Embu Water and Sanitation Company.
The listed homes loan financier has also set aside an undisclosed amount for lending to 10 other counties and their agencies in coming months.
This signals HF’s entry in the non-property corporate lending market as it seeks to boost the deposits and retail banking segment by opening seven new branches.
“The commercial banking strategy is also taking shape and has positively impacted the group’s profitability,” company chairman Steve Mainda said in HF’s rights issue information memorandum.
The company is seeking to raise Sh3.5bn by issuing 116.6 million new shares to existing investors at a price of Sh30, representing a 26 per cent discount on Wednesday’s trading price of Sh40.5.
The offer opens on Thursday and closes on March 13, with the firm planning to use the proceeds to grow its business including the planned expansion.
Mr Mainda said HF will invest Sh175 million in seven new branches this year.
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