FMO has closed a ten-year USD 22.5 million syndicated loan facility with Ghana Home Loans Limited (GHL), Ghana’s leading residential mortgage provider. The loan was arranged by FMO, in syndication with European Financing Partners (EFP), which contributes USD 12.5 million of the total facility amount.
The funds will be used for on-lending to Ghanaian home owners (owner-occupants). The facility will contribute to job creation in Ghana through the positive impact that mortgage provision has on the development of the local housing (construction) sector.
FMO’s Director Financial Institutions Huib-Jan de Ruijter said: “By supporting GHL, we will contribute to enable provision of credit to home owners in Ghana, supporting economic development. FMO has been involved with GHL since its start up days and is pleased to see how it has grown and developed over time. As Ghana’s leading mortgage provider, GHL has played an important part in the development of Ghana’s housing market and will continue to do so. The lenders are therefore very pleased to be able to continue to support GHL.”
“We have always enjoyed a solid partnership with FMO and hope it continues that way well into the future. This additional facility enhances our capacity to make a major in-road into the housing crises -over USD$150m of which we have done already – and entrenches GHL’s leadership in the affordable housing space in Ghana. ” GHL’s Chief Executive Officer, Mr. Dominic Adu was quoted as saying. “Our recent addition of remittances, insurance and comprehensive property related services have made transacting with GHL easier, secure and a one-stop-shop solution”.
About Ghana Home Loans
Ghana Home Loans Limited (“GHL”) is Ghana’s leading residential mortgage provider, mostly providing mortgages to middle class Ghanaians. Having started in 2006, GHL has emerged as an entrepreneurial success in the Ghanaian market place having disbursed over USD 150mln to some 2,100 households with further growth anticipated. Products offered include Home Purchase Mortgage, Land Purchase Mortgage, Home Owners’ Mortgage, Home Construction Mortgage, Refinance Mortgage and Quick Cash. Recently, GHL has introduced mortgage-related products and services such as life and general insurance products offered in conjunction with Activa and Old Mutual as well as money remittance and transfer services offered in conjunction with MoneyGram and has extended its operations to Kumasi. GHL’s largest shareholder is Aureos (Abraaj), which invested in GHL in 2012. For more information visit www.ghanahomeloans.com
FMO is the Dutch development bank. FMO has invested in the private sector in developing countries and emerging markets for more than 45 years. Our mission is to empower entrepreneurs to build a better world. We invest in sectors where we believe our contribution can have the highest long-term impact: financial institutions, energy and agribusiness. Alongside partners, we invest in the infrastructure, manufacturing and services sectors. With an investment portfolio of EUR 8 billion spanning over 85 countries, FMO is one of the larger bilateral private sector development banks globally. For more information, visit www.fmo.nl
About European Financing Partners
EUROPEAN FINANCING PARTNERS S.A. (“EFP”) is a private limited liability company established under the laws of the Grand Duchy of Luxembourg, and is owned by 14 shareholders, mostly European Development Financial Institutions (DFIs).