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HF turns to global lenders for cheaper Sh4 billion loan

HFC chief Sam Waweru (left), chairman Steve Mainda and group CEO Frank Ireri at a past AGM. FILE PHOTO | NMG
HFC managing director Sam Waweru (left), chairman Steve Mainda and group CEO Frank Ireri at a past AGM. FILE PHOTO | NMG 

HF Group's #ticker:HFCK banking subsidiary HFC is set to take a new Sh4 billion loan from international financiers this quarter to fund its operations after rejecting an expensive debt offer from the local market.

The mortgage financier had sought to raise Sh3 billion in June through a one-year private placement debt, attracting investors whose bids ranged between  11 per cent and 13 per cent.

HFC’s managing director Sam Waweru said the private placement was cancelled in favour of the new loan whose interest rate “is in the single digits.”

“We have initiated discussions for about Sh4 billion and these are at an advanced stage,” Mr Waweru said, adding that the money is expected in this quarter ending December.

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