Shelter Afrique, also known as the Shelter-Afrique Development Bank (ShafDB), has closed its first sustainable bond issuance in FCFA, amounting to 60 billion. The funds will be used exclusively to finance affordable and sustainable housing projects in the eight countries of the UEMOA. The subscription period ran from October 7 to 30, 2026. The bond has two tranches: a 5-year term at 6.10% interest and a 7-year term at 6.30% interest.
The International Finance Corporation (IFC), a member of the World Bank Group, and Ecobank Group, through its subsidiary Ecobank Senegal, are the anchor investors in this transaction. The West African Development Bank (BOAD) is among the key financial partners involved. The bond issue was arranged by CGF Bourse, with UCA serving as co-arranger. The transaction was approved by the UEMOA Financial Market Authority (AMF-UMOA) and the Central Bank of West African States (BCEAO).
The IFC and Shelter Afrique signed an agreement on the sidelines of the 2026 Africa Financial Summit (AFIS) in Luanda, Angola. This marks the IFC's first investment in a Shelter Afrique bond issuance. Makhtar Diop, IFC Managing Director, stated that Africa has the necessary capital to finance its own housing needs. Thierno-Habib Hann, Shelter Afrique's Managing Director, emphasized that the transaction addresses the significant housing deficit in the region.
According to estimates from the World Bank Group, the UEMOA region faces a housing deficit of approximately 3.5 million units, with an additional need for nearly 250,000 units per year. Shelter Afrique aims to finance a portfolio of projects that includes 17,554 housing units and 87,772 jobs in the region. The local currency financing is expected to reduce borrowers' exposure to exchange rate risk.
Shelter Afrique's sustainable finance framework was developed in collaboration with the Global Green Growth Institute (GGGI). The framework received a favorable opinion from S&P Global Ratings, which deemed it compliant with the International Capital Market Association (ICMA) and Loan Market Association (LMA) principles for green, social, and sustainable bonds and loans.
The bond issue is part of a larger trend of regional institutions issuing sustainable bonds on the UEMOA market. The date for the admission of Shelter Afrique's bonds to the Bourse Regionale des Valeurs Mobilieres (BRVM) in Abidjan is yet to be determined. This transaction demonstrates Shelter Afrique's commitment to addressing the housing needs in the UEMOA region.
Key points
- Shelter Afrique has issued 60 billion FCFA in sustainable bonds to finance affordable housing projects in the UEMOA region.
- The bond has two tranches: a 5-year term at 6.10% interest and a 7-year term at 6.30% interest.
- The funds will be used to finance a portfolio of projects that includes 17,554 housing units and 87,772 jobs in the region.
