Nairobi, Kenya | 10 October 2026
Shelter Afrique Development Bank (ShafDB) has launched its first sustainable bond issuance, valued at FCFA 60 billion (approximately US$100 million), to finance affordable housing projects across West Africa. The initiative aims to address a regional housing shortage estimated at 3.5 million units while expanding access to local-currency financing.
The bond, launched on 7 October 2026, will support affordable, sustainable and energy-efficient housing projects across the West African Economic and Monetary Union (WAEMU). It also marks a significant step in the bank’s efforts to strengthen African capital markets and reduce reliance on foreign-currency financing.
CGF Bourse Dakar is the lead arranger of the transaction. The International Finance Corporation (IFC) and Ecobank Group, through Ecobank Senegal, are participating as anchor investors.
The issuance comprises two tranches, with a five-year bond offering an interest rate of 6.10% and a seven-year bond at 6.30%. The subscription period opened on 7 October and will close on 30 October 2026.
The financing comes as West African countries face growing pressure to provide adequate housing for expanding urban populations. According to World Bank Group estimates cited by ShafDB, the WAEMU region has a housing deficit of approximately 3.5 million units. An additional 250,000 homes are needed annually to keep pace with population growth and urbanisation.
By raising capital in CFA francs, ShafDB aims to make long-term housing finance more accessible to developers operating within the regional currency zone. This approach allows borrowers to secure funding in the same currency in which they earn revenue, reducing their exposure to exchange-rate fluctuations.
Foreign-currency borrowing can create significant financial pressure on property developers, particularly when local currencies depreciate. Such risks can increase debt-servicing costs and affect the affordability and viability of housing projects.
Nabil Mahfoudh, Director of Treasury at Shelter Afrique Development Bank, said the transaction reflects the institution’s broader ambition to build a stronger financing platform for African housing and urban development.
“Our ambition is not simply to raise capital, but to build a more diversified and resilient financing platform for housing and urban development across Africa,” said Mahfoudh. “Deepening our presence in West African capital markets, allows us to connect local savings with urgent development needs within the region and to deploy financing in the same currency that local developers earn their income.”
The bond forms part of ShafDB’s transformation into a pan-African multilateral development bank serving 44 shareholder countries. Its strategy includes diversifying funding sources, strengthening its capital base and attracting investment from African and international financial institutions.
The bank is also expanding its participation in regional capital markets to increase the availability of long-term financing for housing and related infrastructure.
To support the sustainable bond programme, ShafDB partnered with the Global Green Growth Institute (GGGI) to develop its Sustainable Finance Framework. The framework establishes principles for financing projects with environmental and social benefits, including sustainable housing and urban development.
S&P Global Ratings issued a favourable second-party opinion on the framework, confirming its alignment with recognised international green, social and sustainability bond principles.
The transaction also received regulatory approval from the Autorité des Marchés Financiers de l’UMOA (AMF-UMOA), the financial markets regulator for the West African Monetary Union.
Beyond housing finance, the issuance supports broader efforts to mobilise African savings for development. It aligns with the New African Financial Architecture for Development (NAFAD), as reflected in the Abidjan Consensus, which promotes stronger African financial institutions and deeper regional capital markets.
The initiative seeks to increase domestic and regional investment in development priorities, including housing, urban infrastructure and sustainable economic growth.
ShafDB has previously completed 11 bond issuances across African financial markets. Its most recent issuance before the current transaction took place in Nigeria in April 2022, raising NGN 46 billion, equivalent to approximately US$110 million at the time.
The new sustainable bond represents another step towards connecting African investment capital with the continent’s housing needs. Its longer-term impact will depend on how effectively the funds translate into affordable homes and viable development projects across the WAEMU region.
