Shelter Afrique Development Bank has launched a sustainable bond issue of 60 billion CFA francs to finance affordable, energy-efficient housing suited to urban needs in the eight WAEMU countries. The subscription period, open from October 7, is due to close on October 30, 2026.
The offering is split into a five-year tranche paying 6.10% and a seven-year tranche at a rate of 6.30%. The securities are issued in CFA francs, the same currency as the expected revenues of many regional real estate projects, which may limit currency risk for the developers financed.
CGF Bourse Dakar acts as lead arranger. The International Finance Corporation and Ecobank, through Ecobank Sénégal, are participating as anchor investors. Their presence does not amount to full subscription of the offering, the outcome of which will only be known after the close.
Shelter Afrique presents this fundraising as its first bond carrying a sustainability label. The proceeds are to be allocated to projects meeting its environmental and social financing framework. The announcement does not yet provide a list of housing projects, developers or beneficiary countries, which at this stage prevents an assessment of the geographic breakdown of future disbursements.
The bank estimates the regional housing deficit in the WAEMU at around 3.5 million units, and puts the additional annual need linked to population growth and urbanisation at nearly 250,000. These are regional estimates cited by the institution and do not necessarily correspond to the number of housing units that the 60 billion CFA francs will allow to be built.
The Pan-African institution has already completed eleven bond issues in various markets. Its previous fundraising dates back to April 2022 in Nigeria, where it had raised 46 billion naira. The new offering extends this strategy to the regional West African market and favours local-currency funding rather than dollar-denominated debt.