TORONTO, May 8, 2017 /CNW/ - Home Capital Group Inc. ("The
Company" TSX: HCG) today announced that it has drawn down a total
of $1.4 billion from its $2 billion credit line, the terms of which were
announced by the Company on April 27,
2017.
The Company and its advisers continue to work towards seeking
lower cost sustainable funding solutions and to evaluate strategic
alternatives to solidify and strengthen its successful mortgage
origination platform.
In addition, the Company announced the suspension of its
quarterly dividend to prudently manage liquidity.
The Company's existing mortgage portfolio continues to perform
well. The Company's liquid assets stood at $1.160 billion as of end of day May 5, 2017.
Home Trust's High Interest Savings Account (HISA) deposit
balances are expected to be approximately $192 million on Monday,
May 8, 2017 after the settlement of transactions that took
place on Friday, May 5,
2017.
Total Guaranteed Investment Certificate (GIC) deposits,
including Oaken and broker GICs, stood at $12.64 billion as at May
5, 2017 compared with $12.86
billion as at April 28, 2017.
Oaken savings accounts stood at $167
million as at May 5, 2017
compared $222 million as at
April 28, 2017.
Home Trust's GICs and HISA deposits are eligible for Canada
Deposit Insurance Corp. coverage.
Caution Regarding Forward-looking Statements
This press release contains forward-looking information within
the meaning of applicable Canadian securities legislation. Please
refer to the Home Capital's 2016 Annual Report, available on Home
Capital's website at www.homecapital.com, and on the Canadian
Securities Administrators' website at www.sedar.com, for Home
Capital's Caution Regarding Forward-looking Statements.
About Home Capital Group Inc.
Home Capital Group Inc. is a public company, traded on the Toronto
Stock Exchange (HCG), operating through its principal subsidiary,
Home Trust Company. Home Trust is a federally regulated trust
company offering residential and non-residential mortgage lending,
securitization of insured residential mortgage products, consumer
lending and credit card services. In addition, Home Trust offers
deposits via brokers and financial planners, and through its direct
to consumer deposit brand, Oaken Financial. Home Trust also
conducts business through its wholly owned subsidiary, Home Bank.
Licensed to conduct business across Canada, Home Trust has offices in Ontario, Alberta, British
Columbia, Nova Scotia,
Quebec and Manitoba.
SOURCE Home Capital Group Inc.