Program in Nigeria
· The initiative is part of Shelter Afrique Development Bank (ShafDB)’s expansive ₦200 billion Affordable Housing Credit Program in Nigeria.
Nairobi, 27 December 2023 – Shelter Afrique Development Bank (ShafDB) Board has approved the introduction of an innovative Affordable Housing Credit Guarantee Program in Nigeria.
Effectively, the leading Pan-African housing, urban, and related infrastructure development financier, has begun piloting the new financing structure with the first transaction of Three Billion Naira (₦3 Billion) debt financing guarantee for Modern Shelter Systems and Services Limited under a comprehensive affordable housing program.
This groundbreaking initiative, facilitated by InfraCredit, a triple A (AAA)-rated specialized infrastructure credit guarantee institution, aims to develop 370 affordable housing units in Nasarawa Technology Village, adhering to the International Finance Corporation’s (IFC) green building standards, EDGE.
This initiative is part of Shelter Afrique Development Bank (ShafDB)’s expansive ₦200 billion Affordable Housing Credit Program in Nigeria.
Early last year, ShafDB proceeded with a debut ₦46 billion bond issuance in Nigeria’s capital market which was oversubscribed by 60.7%, reflecting a strong investor appetite. ShafDB’s debut bond issuance lays the ground for its local currency funding to mitigate foreign currency risk.
Along with ShafDB’s anchor investment in Housing Solution Fund (HSF), to address the demand side, Shelter Afrique is closing the loop on de-risking the housing ecosystem and value-chain.
Commenting on the new initiative, Shelter Afrique Development Bank’s Managing Director, Thierno-Habib Hann said, “As an institution, we are commitment to scaling up interventions in Nigeria in an integrated model, mitigating off-take risks, and providing beneficiaries with more accessible, affordable, and longer-tenured financing options, ultimately fostering sustainable development and prosperity”.
Furthermore, under the financing guarantee structure between Shelter Afrique and InfraCredit, this venture marks a significant stride in addressing Nigeria’s housing deficit, with the overall project targeting the development of up to 1,200 EDGE-certified housing units in Nasarawa State.
“We are excited with the successful closing of this transaction and the significance of the project in the housing sector, because of our ability to replicate and scale its impact. The Nasarawa Technology Village project underscores a successful example of public–private partnerships as a mechanism of unlocking climate financing for sustainable development,” Mr. Chinua Azubike, Chief Executive Officer of InfraCredit said.
Nigeria, with a population projected to reach 400 million by 2050, faces a housing deficit estimated at 28 million units, requiring substantial investment. The Housing Solution Fund (funded by ShafDB), through an offtake agreement, will facilitate affordable, long-term home loans to eligible homebuyers. This initiative is a testament to ShafDB’s unwavering commitment to nurturing sustainable and resilient housing solutions, propelling positive transformation across the African continent.
