Mortgage Refinance Company Sh12bn bond exceeds target by 4.3pc
What you need to know:
- The financial institution which has a sole purpose of supporting mortgage lending in the country offered Sh12 billion in five-year corporate bond that was open for public between May 28 and June 8 this year received applications worth Sh12.52 billion and accepted all.
Dar es Salaam. The Sh12 billion bond issued by the Tanzania Mortgage Refinance Company (TMRC) Ltd has been oversubscribed by 4.3 per cent as the sale closed.
The financial institution which has a sole purpose of supporting mortgage lending in the country offered Sh12 billion in five-year corporate bond that was open for public between May 28 and June 8 this year received applications worth Sh12.52 billion and accepted all.
“TMRC applied and received approval from the Capital Markets and Securities Authority (CMSA) for the green shoe option to take the oversubscribed amount,” the company stated in the results published on Friday.
The offer was the first segment of the Sh120 billion corporate bond programme which the TMRC will issue in tranches in the next five years.
TMRC will use the funds sourced from the capital markets for lending to primary mortgage lenders at competitive rate to boost mortgage ownership in Tanzania, CMSA said in a statement.
“This is expected to contribute significantly to the growth and development of housing finance in Tanzania. It is the first Asset Backed Security (ABS) issued in the EAC capital markets,” stated CMSA.
As of March 31, 2017 the total lending by banking sector for the purposes of residential housing was Sh416.85 billion compared to a total mortgage lending of Sh416.94 billion as of December 31, 2016.
