CRRH, Togo

Caisse Regional de Refinancement Hipothecaire (CRRH) is a Secondary Mortgage Institution start-up that has only been in operation since 2011. As a financial institution, CRRH is a limited liability Company, designed to support Long term lending activities by Primary Mortgage Lenders (PML) in UEMOA area. The core function of CRRH to provide long term funds to PMLs, at better rates and under better terms and conditions than PMLs might be able to obtain if acting alone.

Shelter Afrique has invested FCFA500 million in CRRH for 10% of the capital, as a strategic investment with an expected return of 15% by 2016. The Main sponsor is BOAD which is a development bank set by UEMOA members’ countries in 1973. Share capital of CRRH is about FCFA3 billion and CRRH shareholding structure include financial institutions as BOAD, BIDC, Shelter Afrique and commercial banks operating in UEMOA.

CRRH are in the process of mobilizing resources on the financial market through bonds issues. The loans that CRRH will grant to Primary Mortgage Lenders will be guaranteed by debts of mortgage loans granted by these Primary Mortgage Lenders to individuals and  companies for construction, acquisition and transformation of housing located  in UEMOA area.

The margins practiced by CRRH will vary according to level of the loans granted to banks. Principle consists in reducing the margin rate when the level of outstanding is enough higher. It is worth noting that CRRH is not designed to be a high profit company. However, it must be self-sufficient and used any profit to consolidate its equity.