Shelter Afrique closes FCFA 60bn sustainable bond to fund 17,554 WAEMU homes
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Shelter Afrique Development Bank has closed its inaugural FCFA 60 billion sustainable bond, with the first phase of the programme backing a project pipeline of 17,554 housing units across the West African Economic and Monetary Union.
Shelter Afrique Development Bank (ShafDB) has closed its inaugural FCFA 60 billion sustainable bond, the first sustainable issuance by the pan-African development finance institution in the West African regional market.
The bank said the first phase of its sustainable bond programme would support a pipeline of projects covering 17,554 housing units and create an estimated 87,772 jobs across the region, with proceeds channelled into affordable, sustainable and energy-efficient housing projects.
According to estimates cited by the World Bank Group, the WAEMU region faces a housing deficit of about 3.5 million units, with nearly 250,000 additional housing units required annually. By denominating the bond in local currency, ShafDB said the transaction would also reduce borrowers' exposure to foreign-exchange risk by matching the currency of financing with that of project revenues.
ShafDB developed its Sustainable Finance Framework with the Global Green Growth Institute (GGGI) to guide the issuance of green, social and sustainable financing instruments. The framework received a favourable opinion from S&P Global Ratings, which found it aligned with 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 transaction also received approval from the regional financial market regulator, the Autorité des Marchés Financiers de l'UMOA (AMF-UMOA), and the Central Bank of West African States (BCEAO).
GGGI Africa regional director Katerina Syngellakis described the issuance as a landmark demonstration of how African capital markets could mobilise funding for inclusive, low-carbon and climate-resilient development. She said the framework provided a clear pathway for directing investment towards affordable, resource-efficient housing while strengthening local capital markets.