Mortgage originator South African Home Loans (SAHL), has secured commitments to a syndicated loan facility worth R1 billion.
The facility has been arranged by JP Morgan, with Standard Corporate Merchant Bank (SCMB) leading the lending consortium.
Simon Stockley, SAHL's chief executive, says the additional lending capacity allows the company to expand its marketing activity aggressively and to extend the range of its lending across a broader base of property transactions.
"It also opens up a whole range of other funding opportunities that SA Home Loans will be actively exploring over the ensuing months," he says.
The facility is a 12-month syndicated loan, priced off the Johannesburg inter-bank rate quoted on the SA Futures Exchange. Assets under the loan will be independently rated AAA by Fitch South Africa.
SAHL plans to close a second tranche to the facility later this year, bringing additional international lenders to the consortium.
The news follows the earlier announcement that Standard Bank and JP Morgan had taken minority equity stakes in SAHL. The group has processed some R2 billion in home loans since its launch in April last year.
The R1 billion loan facility is intended to be repaid by way of a residential mortgage-backed securitisation issue, which will be led jointly by JP Morgan and SCMB. The bond issue will be presented to institutional investors early next year.
An anticipated AAA rating on the senior notes and the attractive pricing on the issue is expected to create keen investor interest.
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