Shelter Afrique, a development bank, has successfully issued its first sustainable bonds in local currency, raising 60 billion FCFA. The funds will be used to finance affordable and sustainable housing in the eight countries of the West African Economic and Monetary Union (UEMOA). This operation was organized by CGF Bourse and has attracted many investors. The funds will be used to address the housing deficit in the region.
The Société financière internationale (SFI) and Ecobank were the first to commit to the operation, followed by the Banque ouest-africaine de développement (BOAD). The framework for the operation was designed with the support of the Global Green Growth Institute (GGGI) and validated by the Central Bank of West African States (BCEAO), the Financial Markets Authority of UEMOA, and S&P Global Ratings. This validation ensures the credibility and transparency of the operation.
The housing deficit in the UEMOA region is significant, with approximately 3.5 million housing units lacking. The funds raised will be used to finance 17,554 housing units and create nearly 88,000 jobs. Shelter Afrique's officials believe that Africa can finance its own needs by mobilizing local savings. By borrowing in FCFA, projects can avoid risks related to exchange rate fluctuations.
The operation demonstrates the ability of African institutions to mobilize local savings for development projects. Shelter Afrique, SFI, and Ecobank officials see this operation as a success story. They emphasize that African countries can address their development needs by leveraging local resources and expertise.
The sustainable bond issuance is part of Shelter Afrique's strategy to increase access to affordable housing in Africa. The bank aims to address the housing deficit in the region by providing financing for housing projects. The operation is also expected to have a positive impact on the local economy.
Shelter Afrique's successful bond issuance has set a precedent for other African institutions. The bank's approach to mobilizing local savings and borrowing in local currency can be replicated in other countries. This can help reduce the risks associated with foreign currency borrowing and increase the sustainability of development projects.
The 60 billion FCFA raised will be used to finance housing projects in UEMOA countries. The projects will be selected based on their potential to address the housing deficit and create jobs. Shelter Afrique will work with local authorities and developers to implement the projects and ensure their sustainability.
Key points
- Shelter Afrique raises 60 billion FCFA to finance affordable housing in UEMOA countries.
- The funds will be used to address the housing deficit of approximately 3.5 million units in the region.
- The operation demonstrates the ability of African institutions to mobilize local savings for development projects.
