The Shelter Afrique Development Bank (ShafDB) says the first phase of its sustainable bond programme will support projects covering 17,554 housing units and create an estimated 87,772 jobs across the West African Economic and Monetary Union (WAEMU) region.
The programme is expected to channel funding into affordable, sustainable and energy-efficient housing projects as the region grapples with a significant housing shortage.
According to estimates cited by the World Bank Group, the WAEMU region has a housing deficit of about 3.5 million units, with nearly 250,000 additional homes required annually.
ShafDB said denominating the bond in local currency would help reduce borrowers’ exposure to foreign-exchange risks by aligning the currency of financing with the revenue generated by housing projects.
Sustainable Finance Framework
ShafDB developed its Sustainable Finance Framework in partnership with the Global Green Growth Institute (GGGI) to guide the issuance of green, social and sustainable financing instruments.
The framework received a favourable opinion from S&P Global Ratings, which found it fully aligned with internationally recognised market principles.
These include the International Capital Market Association’s Green Bond Principles and Sustainability Bond Guidelines, as well as the Loan Market Association’s Green and Social Loan Principles.
The transaction also received approval from the regional financial market regulator, the Autorité des Marchés Financiers de l’UMOA (AMF-UMOA), and the Central Bank of West African States (BCEAO).
GGGI Africa Regional Director, Katerina Syngellakis, described the issuance as a landmark demonstration of how African capital markets could mobilise funding for inclusive, low-carbon and climate-resilient development.
She said the framework provides a clear pathway for directing investments towards affordable and resource-efficient housing, while strengthening local capital markets and advancing sustainable development.
