ShafDB Launches FCFA60bn Bond to Finance Affordable Housing in West Africa
Shelter Afrique Development Bank (ShafDB) has launched a FCFA60 billion sustainable bond, equivalent to about $100 million, to mobilise local-currency funding for affordable and sustainable housing projects across the West African Economic and Monetary Union (WAEMU) region.
The issuance, launched on October 7, 2026, is the development bank’s first sustainable bond and is intended to expand access to long-term financing for housing projects while strengthening the use of local capital markets in West Africa.
The transaction is being arranged by CGF Bourse Dakar as Lead Arranger, with the International Finance Corporation (IFC) and Ecobank Group, through Ecobank Senegal, serving as anchor investors.
The bond is structured in two tranches. The five-year tranche carries an interest rate of 6.10 per cent, while the seven-year tranche has a rate of 6.30 per cent. The subscription period runs from October 7 to October 30, 2026.
ShafDB Director of Treasury, Nabil Mahfoudh, said the transaction was designed not only to raise capital but also to create a more diversified and resilient financing platform for housing and urban development across Africa.
He said expanding the bank’s presence in West African capital markets would help connect local savings with housing and urban development needs while allowing financing to be provided in the same currency in which local developers generate their income.
Focus on local-currency housing finance
The bond comes as the WAEMU housing market continues to face a significant housing deficit. Estimates cited in the announcement put the regional shortfall at about 3.5 million housing units, with nearly 250,000 additional homes needed each year to keep pace with population growth and urbanisation.
ShafDB said the proceeds are expected to support affordable, sustainable and energy-efficient housing projects in the region.
The bank also highlighted the importance of financing projects in local currency. By matching the currency of project financing with the currency in which housing projects generate revenue, developers can reduce their exposure to foreign-exchange risks, particularly for medium- and long-term investments.
The approach is intended to strengthen the connection between local capital markets and the housing sector while improving the availability of long-term funding for developers and housing-related projects.
Sustainable financing framework
In preparation for the issuance, ShafDB worked with the Global Green Growth Institute (GGGI) to develop and publish its Sustainable Financing Framework.
The framework received a favourable opinion from S&P Global, which the bank said strengthened the credibility and transparency of its sustainable finance approach and its alignment with applicable principles for green and social financial instruments.
The transaction also received regulatory approval from the Autorité des Marchés Financiers de l’UMOA (AMF-UMOA), marking another step in the launch of the bond.
Mobilising African savings
The bond issuance forms part of wider efforts under the New African Financial Architecture for Development (NAFAD), as reflected in the Abidjan Consensus, to increase the mobilisation of African savings and deepen capital markets across the continent.
The initiative seeks to encourage greater use of domestic and regional resources to finance Africa’s development priorities, including affordable housing, urban infrastructure and sustainable development.
ShafDB has previously accessed African capital markets through multiple bond issuances. The development bank said it has completed 11 bond issuances across different African markets.
Its most recent issuance took place in Nigeria in April 2022, when it raised N46 billion, equivalent to approximately $110 million at the time.
The bank said its latest transaction reinforces its intention to play a larger role in mobilising African capital for housing and urban development.
ShafDB is a pan-African multilateral development bank focused on financing housing, urban development and related infrastructure. It operates across 44 African shareholder countries and provides financing and advisory solutions covering areas including mortgage finance, housing microfinance, housing funds, mortgage refinancing and rent-to-own markets.
Through the FCFA60 billion sustainable bond, the institution is seeking to expand local-currency financing for housing in West Africa while supporting projects that combine affordability, sustainability and energy efficiency.
