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Rebranded CABS gets $45m for fresh loans
23/07/2014 00:00:00
by The Source
 
Secured loan from PTA bank ... Kevin Terry
 
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ZIMBABWE’S biggest mortgage lender, Central African Building Society (CABS) says it has secured $45 million in lines of credit from international financiers for mortgage finance and for lending to the struggling local industry.

Managing director Kevin Terry said a $25 million loan from PTA Bank would be used to fund various sectors while $20 million from an undisclosed lender would be used for housing projects.

“By end of this month we would have accessed over $25 million in lines of credit and by year-end we certainly hope to access a further $20 million in terms of a mortgage securitisation deal that we are currently working on,” said Terry at the company’s rebranding ceremony on Wednesday.

“The ($20 million) loan has been approved in principle by the lender and we are now working into legal agreements,” he said, without disclosing details citing non-disclosure agreements.

Terry said the building society was currently sitting on an unsecured parallel lending loan book of over $127 million, while corporate banking loans — including the Distressed and Marginalised Areas Fund — stood at over $100 million and the mortgage loan book at over $130 million.

Earlier this year, the bank received a $10 million loan from French development agency Proparco for housing development and to finance cash-starved manufacturing firms.

Speaking at the branding ceremony, Jonah Mushosho, chief executive of CABS’ parent company Old Mutual said the financial institution had so far given out loans worth $28,6 million under Dimaf.

Under the national housing project Old Mutual jointly launched with CABS, Mushosho said at least 15,000 houses would be constructed over the next five years, with Harare accounting for 4,000 in Budiriro and Hatcliff.

“We plan to set up an infrastructure fund and an agriculture fund which we believe are part and parcel of what we require in an economy like ours,” he said.

On the rebranding, Mushosho said it had been necessitated by a study carried out by parent company, Old Mutual in 2009 where it was established that CABS was “old and tired.”

CABS’ Chisipite branch will be refurbished by end of September, while the rest of the society’s branches will be revamped over the next few years, Terry said.



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