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BFS
BFS
BFS - Blue - Blue Granted A R100 Million Financing Facility From NHFC
BLUE FINANCIAL SERVICES LIMITED
(Registration number 1996/006595/06)
JSE code BFS ISIN ZAE000083655
("Blue" or "the company")
BLUE GRANTED A R100 MILLION FINANCING FACILITY FROM NHFC
Blue has been granted a R100 million financing facility from the National
Housing Finance Corporation (NHFC), which will significantly expand its mortgage
lending business in South Africa.
George Earle, General Manager for the Blue home loans division, says the funding
will be allocated to the SA home ownership division, which provides housing
finance to lower and middle income groups, for loans up to R400 000.
Earle says that despite the current economic climate, Blue is seeing a
significant increase in home loan applications - and the funding line will
enable the group to provide housing to numerous families in SA. "We operate in
sectors where the more conservative banks are reluctant to lend, from our
experience in our chosen market we are ideally positioned to determine our
client`s ability to repay whilst also adhering strictly to the requirements of
the National Credit Act. The NHFC funding allows us to extend our products to a
market which is currently struggling to receive affordable credit and in this
process play our role in the delivering of housing."
Blue mortgage lending products are focused on the Northern Cape, Gauteng and KZN
markets, and to a lesser degree in the Eastern Cape. Earle says that the new
funding allows the company to expand its geographic reach. "Property developers
across the country have been informed that we have received this additional
finance, to be on-lent to aspiring home owners."
Blue home loan finance is traditionally over a twenty year term and appropriate
collateral is provided by the customer in the form of a deposit or a retirement
fund guarantee as found in the pension supported housing loan model. Home loan
clients are evenly split between those employed by government and those working
in the private sector.
Earle says the NHFC funding gives a tremendous boost to Blue`s capacity in this
sector. "The NHFC has approved this financing facility as part of its mandate
from government to address the shortage of homes in the country and to ensure
that every South African with a regular source of income is able to gain access
to home ownership finance. We hope this is the start of a long-term relationship
whereby all South Africans can benefit."
Pretoria
21 October 2008
Designated adviser PSG Capital (Pty) Limited
Date: 21/10/2008 13:30:10 Produced by the JSE SENS Department.
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