June 20, 2017 / 12:21 PM / a year ago

Home Capital to sell C$1.2 bln commercial mortgage portfolio

June 20 (Reuters) - Canadian lender Home Capital Group Inc said on Tuesday it would sell a portfolio of commercial mortgage assets valued at C$1.2 billion to private equity firm KingSett Capital.

“Proceeds from the transaction are expected to have an immediate impact by enabling us to enhance our liquidity and reduce the outstanding debt under the Company’s $2 billion credit facility,” interim Chief Executive Bonita Then said.

Home Capital has been trying to repair its business following a near-collapse after the OSC, Canada’s biggest securities regulator, accused the lender of making misleading statements to investors about its mortgage underwriting business. (Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Saumyadeb Chakrabarty)

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