This archive report was first published on 14 October 2019.
On October 14, 2019, HF Group PLC made history by fully redeeming its KSh 3 billion corporate bond, marking a significant milestone in the company's financial journey.
The Medium Term Note, issued in 2012 with a 7-year tenor at a 13 percent coupon, played a pivotal role in bolstering HF Group's loans and advances, which grew from KSh. 25 billion to KSh. 44 billion as at December 2018.
According to HF Group CEO Robert Kibaara, the bond's redemption was a testament to the company's robust corporate governance culture and well-defined corporate strategy.
‘We are pleased to announce the full redemption of tranche II of the seven-year Medium Term Note and are satisfied with the returns generated for our investors,' Kibaara said.
The bond's success also propelled the Group's project financing of developers seeking to tap into the growing housing demand, with the sales of which being accelerated after the launch of the Shika Nyumba Na HF campaign.
‘We have sold more houses in the last eight months than the previous two years combined, which boosted our liquidity and hence fully financing the bond repayment,' Kibaara added.
As the Group continues to make strides on its business turnaround strategy, including diversification to full service banking and leveraging digital transformation, HF Group remains committed to improving the quality of life for individuals and communities through affordable housing.
