admincontinental bank for property and infrastructure development projects.
Chief executive Mr Brains Muchemwa this week confirmed the arrangement, adding they would be lending up to 60 percent of the total project cost to cover the construction component, with the developer expected to contribute the balance.
“Oxlink Capital is in the process of screening applicants willing to access this money. The minimum limit is US$2 million and the maximum is US$7 million, for up to five years,” he said.
Applicants meeting the basic criteria would be forwarded to the continental financier.
“The property market has been subdued for almost 12 years,” said Mr Muchemwa. “But we believe this is a huge opportunity for developers unable to secure long-term funding.
“A handful of banks unable to underwrite mortgages due to the short-term nature and instability of the deposits in the market can definitely take advantage of this facility,” he said.
Areas of financing include residential properties, commercial buildings, sites and services, and lines of credit to financial institutions for housing mortgages.
The facility comes at a time when the PTA Bank is also planning to unveil a three-year housing development facility to local building societies. The facility would be administered through CBZ Bank.
PTA Bank has so far advanced US$116,8 million to local banks and corporates.
Zimbabwe has endured a protracted mortgage stress that set in at the turn of the decade when savings started dropping sharply before reaching critical levels in 2008.
Of late, the market has seen a number of mid-term lines of credit with low interest rates of less than five percent trickling in.
The PTA Bank, established in 1985, disbursed a cumulative US$6 billion last year to its 17 member states.
The bank has also played an active role in promoting the Common Market for Eastern and Southern Africa regional integration.
Online Reporter