By MAIMBOLWA MULIKELELA –
THE Zambia National Building Society (ZNBS) projects to raise K150 million from investments in the capital market in 2015 meant to increase its housing fund portfolio.
This will enable the institution provide affordable finance to Zambians to access mortgages for the construction of houses and renovate its properties across the country.
Early this year, the Government recapitalised ZNBS to the tune of K165 million from the US$750million Eurobond proceeds.
The funds were among others meant to provide affordable financing and branch expansion.
ZNBS managing director Joseph Chikolwa said his institution would raise a K150 million from the Lusaka Stock Exchange (LuSE) this year.
Mr Chikolwa said in an interview in Lusaka yesterday that a financial advisor had already been identified and would soon be agreeing on the terms and conditions of the contract before ZNBS proceeded to issue a bond on the LuSE.
“As you may know that we received a shot-in-the-arm from the Government amounting K165 million which was good but it was not enough. Next year we want to raise the money through the capital market by a way of a bond issue,” he said.
He said the resources would be used to deal with mortgages and renovations of ZNBS property and for employee liabilities.
“This will be a general housing fund. This will be long term in nature because we want to extend our duration of mortgages from 10 years to around 20 years so that we give chance to those that may not afford. It is also meant to deal with some of our buildings which are in a deplorable state. We have not been able to renovate our properties and because of that we have not been able to increase rentals in a long time,” he said.
The ZNBS was promoting its broad branch network for citizens to access both mortgages as well as loan products to either, renovate, purchase or build property.
The company reaffirmed its commitment to cushion the country’s housing deficit which had resulted in scarce and costly accommodation for the majority of Zambians.