Shelter Afrique Development Bank (ShafDB) has raised FCFA 60 billion through its first sustainable bond issuance to support affordable and sustainable housing projects across West Africa.
The bond, valued at approximately $100 million, is expected to mobilise local-currency financing for housing developments and energy-efficient projects across the West African Economic and Monetary Union (WAEMU).
The issuance was arranged by CGF Bourse Dakar, with the International Finance Corporation (IFC) and Ecobank Group, through Ecobank Senegal, participating as anchor investors.
The bond is divided into two tranches. The five-year tranche carries an interest rate of 6.10 per cent, while the seven-year tranche offers 6.30 per cent. The subscription period runs from October 7 to October 30, 2026.
The fundraising comes amid a significant housing shortage across the WAEMU region, where the deficit is estimated at 3.5 million units. The region also requires an additional 250,000 housing units annually to meet growing demand driven by population growth and urbanisation.
Shelter Afrique said proceeds from the bond would finance affordable, sustainable and energy-efficient housing developments while providing developers with access to funding in local currencies.
According to Nabil Mahfoudh, Director of Treasury at Shelter Afrique Development Bank, the initiative is part of the institution’s strategy to expand access to African capital markets and strengthen housing finance across the continent.
He noted that local-currency financing would help reduce foreign exchange risks for developers, particularly those undertaking medium- and long-term housing projects.
The bank developed its Sustainable Financing Framework in collaboration with the Global Green Growth Institute (GGGI), while S&P Global provided a favourable opinion on the framework.
The issuance also received regulatory approval from the Autorité des Marchés Financiers de l’UMOA.
The transaction forms part of Shelter Afrique’s broader strategy to diversify its funding sources, strengthen its capital base and expand its role as a pan-African multilateral development bank.
It also aligns with efforts under the New African Financial Architecture for Development to mobilise domestic and regional savings for housing and infrastructure development.
Shelter Afrique has previously completed 11 bond issuances across African markets. Its most recent transaction in Nigeria was in April 2022, when it raised N46 billion, equivalent to approximately $110 million at the time.
The latest issuance is expected to strengthen the institution’s capacity to mobilise regional investment for affordable housing, urban infrastructure and sustainable development across Africa.
