Shelter Afrique Development Bank
Shelter Afrique Development Bank (ShafDB) has successfully closed its FCFA 60 billion (approximately $100 million) sustainable bond issuance, raising funds to support affordable and sustainable housing projects across the eight-member West African Economic and Monetary Union (WAEMU).
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The subscription period ran from 7 to 30 October 2026, marking the completion of the bank’s first sustainable bond issuance on the regional financial market. The proceeds will be dedicated to financing affordable, sustainable and energy-efficient housing projects across the region.
The bond was structured into two tranches: a five-year instrument carrying an interest rate of 6.10% and a seven-year tranche offering 6.30%.
CGF Bourse acted as the lead arranger, while United Capital Asset Management (UCA) served as co-lead manager. The International Finance Corporation (IFC) and Ecobank Group, through Ecobank Senegal, participated as anchor investors, with the West African Development Bank (BOAD) among the major participating financial institutions.
Bond to Support 17,554 Housing Units and Create 87,772 Jobs
The first phase of the bond programme will support a pipeline of sustainable housing projects covering 17,554 housing units across the WAEMU region. ShafDB also projects that the investments will generate approximately 87,772 jobs across the regional economy.
The expected employment impact reflects the wider economic activities associated with housing development, including construction, building materials, infrastructure provision and related services.
The financing comes as the WAEMU region faces an estimated housing deficit of approximately 3.5 million units, with an additional 250,000 homes required annually to meet demand driven by population growth and urbanisation.
ShafDB intends to channel the proceeds towards projects that improve access to affordable housing while incorporating sustainability and energy-efficiency considerations.
Local-Currency Financing to Reduce Foreign Exchange Exposure
The bond’s denomination in CFA francs is central to its financing structure. By raising funds in the same currency used by many developers and housing projects across the region, ShafDB aims to reduce borrowers’ exposure to foreign-exchange fluctuations.
Currency mismatches can increase financing costs and complicate the repayment of long-term property development loans, particularly when developers generate revenue in local currencies but borrow in foreign currencies.
The local-currency structure is therefore intended to make long-term housing finance more manageable for developers and other institutions involved in the regional housing market.
Sustainable Finance Framework Receives Regulatory Approval
ShafDB developed its Sustainable Finance Framework in partnership with the Global Green Growth Institute (GGGI) to establish guidelines for issuing green, social and sustainable financing instruments.
The framework provides the basis for directing funds towards projects that meet the bank’s environmental and social financing objectives. It received a favourable assessment from S&P Global Ratings, which found it aligned with recognised international 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 Loan Principles and Social Loan Principles.
The transaction also received approval from the Autorité des Marchés Financiers de l’UMOA (AMF-UMOA), the regional financial market regulator, and the Central Bank of West African States (BCEAO).
The involvement of GGGI, alongside the framework assessment and regulatory approvals, provides an institutional structure for the allocation of proceeds and the sustainability objectives attached to the bond.
Implications for West Africa’s Housing Finance Market
The successful closure of the bond demonstrates how regional capital markets can mobilise long-term funding for housing and urban development. It also provides ShafDB with a financing structure that brings together institutional investors, regional financial institutions and international development partners.
For housing developers, the availability of local-currency funding could help address some of the financing constraints associated with long-term residential projects. The structure also offers an alternative to relying solely on foreign-currency borrowing, which can expose developers to exchange-rate risks.
However, the projected 17,554 housing units represent a pipeline of projects expected to receive financing, rather than completed homes. The actual impact will depend on how quickly the funds reach eligible projects and how effectively developers and financial institutions deploy the capital.
ShafDB’s latest issuance builds on its previous fundraising activities across African markets. The institution has completed 11 bond issuances in different markets, including a ₦46 billion bond raised in Nigeria in April 2022.
The FCFA 60 billion transaction adds a new sustainable-finance instrument to its funding strategy and strengthens its efforts to mobilise domestic and regional capital for affordable housing across Africa.
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