Shelter Afrique Development Bank (ShafDB) has launched its first sustainable bond issuance, worth FCFA 60 billion, which is approximately USD 100 million. The funds will be used to finance affordable and sustainable housing projects in the West African Economic and Monetary Union (WAEMU) region. This move is part of ShafDB's strategy to mobilize local-currency resources for development needs in the region.
The sustainable bond issuance is structured in two tranches: a five-year tranche at 6.10% and a seven-year tranche at 6.30%. The subscription period for the bond ran from 7 to 30 October 2026. The transaction was arranged by CGF Bourse Dakar as Lead Arranger, with the International Finance Corporation (IFC) and Ecobank Group, through Ecobank Senegal, as anchor investors. This indicates strong support from major financial institutions.
According to Nabil Mahfoudh, Director of Treasury at Shelter Afrique Development Bank (ShafDB), the institution's ambition is not simply to raise capital but to build a more diversified and resilient financing platform for housing and urban development across Africa. By deepening its presence in West African capital markets, ShafDB aims to connect local savings with urgent development needs within the region.
The housing market in the WAEMU region faces a significant structural deficit, with an estimated 3.5 million housing units needed. The region requires nearly 250,000 additional units each year to keep pace with population growth and urbanization. ShafDB's issuance aims to channel financial resources toward affordable, sustainable, and energy-efficient housing projects.
ShafDB partnered with the Global Green Growth Institute (GGGI) to develop and publish its Sustainable Financing Framework. The framework received a favorable opinion from S&P Global, strengthening the credibility and transparency of ShafDB's approach to sustainable finance. The transaction has also received approval from the Autorité des Marchés Financiers de l'UMOA (AMF-UMOA).
This sustainable bond issuance is part of the momentum behind the New African Financial Architecture for Development (NAFAD), as enshrined in the Abidjan Consensus. The goal is to strengthen the mobilization of African savings and further develop the continent's capital markets. Shelter Afrique Development Bank has completed 11 bond issuances across various markets on the continent.
Through this sustainable bond issuance, Shelter Afrique Development Bank reaffirms its commitment to playing a greater role in mobilizing African capital and financing housing and urban development solutions. The institution has demonstrated its ability to mobilize local-currency resources from African investors, with its most recent bond issuance taking place in April 2022 on the Nigerian market.
Key points
- Shelter Afrique Development Bank issues FCFA 60 billion sustainable bond to finance affordable housing in West Africa.
- The bond issuance aims to channel financial resources toward affordable, sustainable, and energy-efficient housing projects in the WAEMU region.
- The transaction is part of ShafDB's strategic transformation into a pan-African multilateral development bank.
