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BancABC, NAPSA in mortgage deal

BANCABC has signed a memorandum of understanding (MoU) with National Pensions Scheme Authority (NAPSA) to enable the bank to access funds from the pension scheme to provide mortgages to the public.
Under the MoU signed in October, NAPSA will provide funds in form of bonds which will be demand-based.
BancABC managing director Clergy Simatyaba said, “The MoU will be an avenue to try and get into the market…For a long time, we have been trying to find ways on how we can raise long-term debt for mortgages.”
Mr Simatyaba said in an interview that the mortgages that will be demand-based and will have a tenure of up to 30 years.
He said the long tenure will enable the public to access the mortgages at affordable rates.
Mr Simatyaba also said the bank has grown its balance sheet with total deposits growing by over 40 percent.
The total deposits currently stand at about K1.6 billion from about K800 million recorded early this year.
Retail banking, small and medium-scale enterprises and institutional investors contributed to the growth of the bank.