Home Capital Group is down by over 60% as of 11:17am this morning.
Home Capital Announces Non-Binding Agreement in Principle with Major Institutional Investor for Credit Line of $2 Billion to mitigate the impact of a decline in Home Trust’s HISA deposit balances that has occurred over the past four weeks and that has accelerated since April 20.
HISA balances have fallen by $591 million in the period from March 28 to April 24. The total HISA balance stood at approximately $1.4 billion as at April 24. The Company anticipates that further declines will occur, and that the credit line would also mitigate the impact of those.
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Home Trust’s Guaranteed Investment Certificate (GIC) deposits remained essentially unchanged over that time. Total GICs, including both Oaken and broker GICs, stood at $13.01 billion as at April 24, compared to $13.06 billion as at March 28.