Project General Description
This project is a Line of Credit designed to provide long-term funding to Housing Finance Bank Limited (HFB), a bank dedicated to financing of housing in Uganda. This Line of Credit is in line with Uganda’s National Development Plan, and will help the country to provide decent and affordable housing for low-income groups, and promote structured real estate development. It will enable the construction of more than 14,000 new housing units and diverse types of commercial premises, encouraging job creation and providing new employment opportunities. Given HFB’s focus on low-income housing, it will strengthen HFB’s ability to provide financing to real estate developers operating in Uganda’s structured and low cost real estate development, while abiding to stringent environmental and urban planning standards and laws. This facility will also contribute to developing the domestic mortgage market and will have a demonstration effect to encourage other lenders to intervene in the market. The Line of Credit line will further support HFB’s diversification strategy by freeing up other resources for their reorientation to mortgage lending for individuals and Small and Medium-sized Enterprises (SMES).
The project’s main beneficiaries are Housing Finance Bank Limited (HFB), low-income individuals, Small and Medium-sized Enterprises and Real Estate developers.