Shelter Afrique set to raise FCFA 10 billion on the BRVM for the construction of housing
5 February 2014
Shelter Afrique, the Pan-African institution of housing finance and urban development, is set to issue a 7-year bond worth FCFA10 billion to finance housing projects within the West African Economic and Monetary Union (WAEMU).
In November 2013, Shelter Afrique obtained the permission of CREPMF (Regional Council for Public Savings and Financial Markets), regulator of the BRVM, to issue the bond. They will be listed on the Regional Stock Exchange (BRVM), like the previous 4 issuances. In order to list on the BRVM bond issues have to be guaranteed by an approved development finance institution, financial institution or guarantee fund. CGF Bourse has been given the mandate for the structuring and placement of the bonds.
It is expected that the resources mobilized through this issuance will facilitate the construction of affordable housing in the region. Managing Director of Shelter Afrique, Alassane Ba said, “This authorization is in line with Shelter Afrique’s past issuances in the African capital markets as a regular issuer. Shelter Afrique is always looking to mobilize resources from within the financial markets to finance affordable housing.”
In September 2013 , Shelter Afrique issued a Kshs 5 billion ( $ 58 million ) bond on the Nairobi Stock Exchange to finance real estate projects in Kenya. The medium term bond was over-subscribed by 43%, a sign of the confidence that local investors have in the pan-African institution. The fact that Shelter Afrique continues to tap into debt capital markets as a source of affordable financing and a means to support demand for long term credit is also a testament to “...investors’ appetite for good quality credit...” according to Naval Sood, CfC Stanbic Bank Executive Head Capital Market & Advisory East Africa in an earlier interview.
Shelter Afrique has long-term ratings of A and short-term A1 assigned by Bloomfield Investment Corporation.