Integrated financial services provider, Housing Finance has yesterday listed an additional 116, 666, 667 million ordinary shares on the Nairobi Securities Exchange. This move comes after the conclusion of a highly successful Rights issue that saw the financial provider raise 3.5 billion Kenya Shillings, providing them with the capital required for growth and expansion of the company and its subsidiaries. This move will not only enlarge the free float of Housing Finance stock on the exchange, but by default the entire market.
Speaking on the recently concluded Rights Issue, Housing Finance Managing Director, Frank Ireri said, „We are very pleased with the outcome of our Rights Issue and are confident on the use of Capital Markets as a source of long term funding. This will enable us to fund our business expansion, enhance our corporate profile as well as enable existing shareholders to invest in the business.‟
Remarking on this achievement Chairman of the Housing Finance Board, Steve Mainda said, „Our relationship with the NSE goes back 23 years since we commenced trading in 1992. Now in 2015, it gives me great pride to list an additional 116, 666, 667 million shares, equivalent to 3.5 billion Kenya Shillings. This is a true testament to the shareholder confidence and belief in our vision.‟ This vision will see Housing Finance restructure their business, and lead to the establishment of a holding company that will oversee all of their subsidiaries, subject to the approval of the Central Bank.
Nairobi Securities Exchange, Chairman, Mr. Eddy Njoroge reiterated these remarks by adding “We wish to singularly thank Housing Finance for continuously using Kenya‟s capital markets to strengthen its capital base and fund its expansion strategy. The company‟s continued growth and expansion supported by the capital markets is a fine example of the abundant opportunities our market offers.
He continued to say “The Exchange will this year be launching various market segments such as Real Estate Investment Trusts (REITs), we look forward to working with organizations such as Housing Finance to expose our citizens to this lucrative real estate sector while promoting financial inclusion for all.”
The Rights Issue, which was oversubscribed by 257 percent is the second rights issue by Housing Finance.The company is currently undergoing a substantial restructuring, including reorganization, efficiency measures and continued investments in quality processes. These restructuring measures are necessary and will strengthen HF‟s long-term value.
The re-organization supported by the funds from the Rights Issue, will give the organization the impetus to register further growth and optimally deliver on its growth strategy.
The commercial banking strategy of the company is also taking shape. Today Housing Finance Banking offering includes retail, corporate and SME banking capabilities. Housing Finance product portfolio includes current and savings accounts, forex products, asset finance, trade finance and corporate banking.
This is part of the firm‟s strategy to grow its banking business through provision of a complete suite of retail and corporate banking products and services to its customers. In order to support their retail and corporate business, Housing Finance plans to increase its retail footprint across the country.
In order to support our retail and corporate business, Housing Finance plans to increase its retail footprint across the country.
„In addition, we also plan to roll out the new core banking system during the course of the year to support the rollout of additional banking products. As you can see, the future is very bright for Housing Finance,‟ commented Mr. Ireri.
In conclusion Mr. Ireri remarked „This year we are celebrating our golden Jubilee, and even as we mark this great milestone, our mission is to remain the leading integrated solutions enabler for the property industry. We will continue to offer innovative products and services, delivered all-under one roof by exceptionally committed people. Building on the strength of our legacy, we move into 2015 with renewed energy and passion, looking to push forward and carve another 50 years of success.‟
