The bond repayment was financed through a mixture of internally generated funds and debt refinancing/FILE
NAIROBI, Kenya, Oct 2 – HF Group’s banking subsidiary HFC is set to repay a Sh7 billion debt it had raised in 2010 through a corporate bond.
HFC Managing Director Sam Waweru has said the medium term bond has been a critical fundraising component that has helped the financier provide SMES with working capital as well as providing financing for large-scale housing investments.
“From a strategic perspective we were able to provide SMES with working capital, project financing as well as investment in large-scale retail housing projects such as Precious Heights in Riruta and Kahawa Downs in Kahawa along the Thika Super Highway,” Mr. Waweru said.
Waweru adds that the repayment has been financed through a mixture of internally generated funds and debt refinancing.
He says the proceeds from the bond boosted the Bank’s capital and liquidity as well as the balance sheet.
“In 2009 just before the bond was issued the bank’s loan book stood at Sh15 billion and by end of 2016 the loan book had grown to Sh54 billion, a 360% growth.”
The company says it still has an appetite for debt but the instruments will vary depending on the target use and investors plus prevailing market conditions.
