May 16, 2018 / 11:16 AM / 2 years ago

Home Capital gets new funding to replace Berkshire credit line

FILE PHOTO - The entry to the Home Capital Group's headquarters is seen at an office tower in the financial district of Toronto, Ontario, Canada on May 1, 2017. Picture taken using a wide angle lens. REUTERS/Chris Helgren/File Photo

(Reuters) - Canadian mortgage lender Home Capital Group Inc (HCG.TO) said on Wednesday its unit received a two-year C$500 million funding commitment that would replace a C$2 billion credit facility offered by Warren Buffett’s Berkshire Hathaway Inc (BRKa.N).

Last year, Buffett took a 20 percent stake in Home Capital and provided a C$2 billion credit facility after investors withdrew more than 90 percent of funds from its high-interest savings accounts.

“This Credit Facility is better aligned with our current liquidity and funding profile and results in a lower aggregate cost than the existing credit facility it is replacing,” Chief Financial Officer Brad Kotush said.

Reporting by Anirban Paul in Bengaluru; Editing by Saumyadeb Chakrabarty

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