Shelter Afrique Development Bank (ShafDB) has raised $106 million through its first sustainable bond issuance in the West African Economic and Monetary Union (WAEMU), securing funding to expand affordable and sustainable housing across eight West African countries.
The five-year and seven-year bond tranches carry interest rates of 6.10% and 6.30%, respectively. The subscription period ran from October 7 to October 30, attracting investors including the International Finance Corporation (IFC), Ecobank Group and the West African Development Bank (BOAD).
CGF Bourse acted as lead arranger, while UCA served as co-lead manager. Ecobank Senegal participated in the transaction as an anchor investor on behalf of Ecobank Group.
The issuance comes as West Africa grapples with a substantial housing shortage, with the WAEMU region facing an estimated deficit of 3.5 million housing units and requiring approximately 250,000 additional homes annually, according to estimates cited by the World Bank Group.
Speaking to Impact Newswire, IFC Managing Director Makhtar Diop said Africa needed to mobilise more domestic capital to address its housing challenges.
“Africa has the capital to finance more of its own housing needs. The opportunity is to connect those savings with long-term investment that can put more families in homes, strengthen local businesses, and create jobs. Our partnership with Shelter Afrique Development Bank is an important step toward building the deeper local capital markets needed to make that happen.”
Ecobank Group Chief Executive Officer Jeremy Awori told Impact Newswire that the transaction demonstrated the potential of regional financial partnerships to support housing development and its associated industries.
“Ecobank is proud to partner with Shelter Afrique Development Bank on this landmark issuance, and to anchor a transaction that shows what regional collaboration can deliver. Housing is more than bricks and mortar. It is a value chain that runs from land and materials to developers, mortgage providers, and the families who finally own their homes. Across our footprint, we want to support every link in that chain, and our partnership with ShafDB gives us a strong platform to support affordable and sustainable housing.”
ShafDB Managing Director Thierno-Habib Hann said the bond would help mobilise long-term capital for housing development while supporting investment across the broader construction and urban infrastructure sectors.
“This sustainable bond is #NAFAD in action: African and global institutions working together to put long-term domestic capital behind the homes our people need. With a housing deficit of over 53 million units, no single institution can close this gap alone. That is why we structured this transaction with commercial, regional, and international partners to accelerate access to affordable, sustainable housing and invest in the broader housing value chain. The partnership with IFC, Ecobank, BOAD and other private players shows what a sustainable bond issuance in the WAEMU market can achieve, and it gives us a template we intend to replicate across Africa. Many thanks to all our partners and regulators that made this possible. We will continue driving sustainability in the housing and urban infrastructure space.”
The first phase of the bond is expected to support a pipeline of sustainable housing projects comprising 17,554 units and generate 87,772 jobs across the WAEMU region, according to ShafDB.
The proceeds will finance affordable, energy-efficient and sustainable housing projects. Issuing the bond in local currency is also intended to reduce foreign-exchange exposure for borrowers by aligning financing currencies with the currencies in which housing projects generate revenue.
The transaction also marks an effort to deepen domestic capital markets and expand access to long-term financing for infrastructure and housing development in West Africa.
ShafDB developed its Sustainable Finance Framework in partnership with the Global Green Growth Institute (GGGI), establishing guidelines for issuing green, social and sustainable financing instruments.
The framework received a favourable opinion from S&P Global Ratings and was assessed as fully aligned with internationally recognised market principles, including the International Capital Market Association’s Green Bond Principles and Sustainability Bond Guidelines, as well as the Loan Market Association’s Green and Social Loan Principles.
The issuance was also approved by the regional financial markets regulator, Autorité des Marchés Financiers de l’UMOA (AMF-UMOA), and the Central Bank of West African States (BCEAO).
Speaking to Impact Newswire, GGGI Africa Regional Director Katerina Syngellakis said the transaction could help channel regional savings into climate-conscious housing and strengthen the role of African capital markets in financing sustainable development.
“This landmark sustainable bond demonstrates how African capital markets can be mobilized to finance inclusive, low-carbon, and climate-resilient development. Through the Sustainable Finance Framework developed with ShafDB, this issuance creates a clear pathway for directing investment toward affordable and resource-efficient housing while strengthening the role of local capital markets in advancing sustainable development objectives. GGGI is proud to support innovative financing solutions that help more families access affordable, sustainable homes, building healthier communities and a more inclusive future for all.”
The bond will be listed on the Bourse Régionale des Valeurs Mobilières (BRVM) in Abidjan, with the listing date yet to be announced.
Stay ahead of the Stories shaping our world. Subscribe to Impact Newswire and join our
WhatsApp Channel for updates on global tech, business, and innovation—all in one place.
Dive deeper into the future with the Cause Effect 4.0 Podcast, where we explore the ideas, trends, and technologies driving the global AI conversation.
Got a story to share? Contact Us to reach a global audience with Impact Newswire.
Mohd Hassan has extensive experience in news gathering, editing, and writing for the newswire industry, Contact – Info@impactnews-wire.com
Discover more from Impact Newswire
Subscribe to get the latest posts sent to your email.
