The Society for Habitat and Housing in Africa (Shelter Afrique)

Shelter Afrique’s N46 billion debut bond issue in the Nigerian capital market was oversubscribed by 60.7%, reflecting strong investor appetite

Shelter Afrique and counterparties of the Naira-denominated bond at the signing ceremony

ABUJA, Nigeria, April 26, 2022 -/African Media Agency (AMA)/- Shelter Afrique, the pan-African development finance institution exclusively dedicated to housing finance in Africa, is pleased to announce the success of its first project of ₦46 billion (US$110.7 million) Series 1 fixed rate senior unsecured bond issue in the Nigerian capital market under its ₦200 billion bond issuance program pounds (US$481.3 million).

The double-tranche bond issue was oversubscribed by 60.7%, with the order book peaking at ₦64.3 billion ($154.6 million), allowing Shelter Afrique to exercise the option to “green shoe” and raise an additional ₦6 billion (US$14.4 million) above the initial plan of ₦40 billion (US$96.3 million). With an AA rating from GCR Ratings and an A+ rating from Agusto & Co, the bond issue attracted participation from a wide range of institutional investors, including pension funds, banks and corporations. insurance. The oversubscription rate demonstrates investor confidence in Shelter Afrique’s mandate to enable housing development in Africa, coupled with the institution’s strong management team, business strategy and credit profile.

5-year Tranche A bonds at a price of 13.00% and 7-year Tranche B bonds at a price of 13.25%. Bond tenors are aligned with the institution’s housing finance strategy and long-term plans in Nigeria. Shelter Afrique will use the proceeds of the bond to finance massive housing development by Tier 1 property developers and to provide lines of credit.

FDSH Capital Limited acted as lead issuer while ARM Securities Limited, FCMB Capital Markets Limited and United Capital PLC acted as joint issuers for the bond issue. Other professional parties include Aluko & Oyebode and Banwo & Ighodalo, who respectively acted as attorneys for the issue/issuer and attorneys for the trustee. While United Capital Trustees Limited and CardinalStone Registrars Limited acted as Trustee and Registrar respectively. Receiving banks include FSDH Merchant Bank Limited, Stanbic IBTC PLC and United Bank for Africa PLC.

Announcing the result, Shelter Afrique Acting Chief Executive Kingsley Muwowo said:

“This is the first time that Shelter Afrique has tapped into the Nigerian debt capital market and the positive market reception is a clear indication of investor confidence in our long-term value proposition for the Nigerian housing market. We want to assure our investors that we will use the proceeds of the bond issue wisely, which will ensure that more value is created for them.

Mr. Muwowo said the issuance of naira-denominated bonds reflects the organization’s desire to focus on tailored and long-term financing solutions for the provision of affordable and adequate housing in Nigeria and across the country. ‘Africa. He also noted that exchange rate volatility in most member countries is one of the major challenges in financing affordable and decent housing in Africa, further explaining that:

“Constant currency fluctuations make it difficult for those who borrow in foreign currencies to honor their loans due to the risk of currency exposure. Through this bond issue, developers and major mortgage lenders in Nigeria will be able to access financing in Naira, thus reducing these risks.

Speaking at the signing ceremony held in Lagos, Nigeria, Managing Director of FSDH Capital Limited, Mr. Tolu Osinibi said:

“FSDH Capital is pleased to have advised Shelter Afrique on its first successful bond issue in the Nigerian capital market. Shelter Afrique continues to play a pivotal role in housing development in Africa and the success of the bond issuance will encourage other supranational financial institutions to tap into the Nigerian debt capital market for their Naira financing needs. We thank the investment community for their support during the bond issuance. We also thank the Board of Directors and management of Shelter Afrique for trusting us with this historic transaction, as well as their commitment and dedication throughout the process.

Exchange rate: 1US$ = N415.58

Distributed by African Media Agency on behalf of Shelter Afrique.

Notes to editors:

About Shelter Afrique

Shelter Afrique is a pan-African housing finance and development institution established by African governments to address the need for a sustainable housing delivery system and related infrastructure projects in Africa. Its shareholders include 44 African countries, the African Development Bank, the African Reinsurance Corporation and the African Solidarity Fund (ASF).

The organization’s mandate is to provide debt, quasi-equity and equity financing to public and private institutions for housing and urban infrastructure projects in its member countries. Shelter Afrique builds strategic partnerships and offers a host of related products and services to support the effective delivery of affordable housing and commercial real estate. These include project finance, institutional lending, equity and joint ventures, trade finance and social housing. The organization also offers practical advice and technical assistance to a wide range of industry players.

For more information, please visit: http://www.shelterafrique.org/

Follow Shelter Afrique on Twitter, LinkedIn and Facebook.

For more information, please contact:

Babatunde Oyateru

| Corporate Communications Manager | Shelter-Africa| Shelter-Afrique Center | Longonot Road – Upper Hill|

Such. : +254 20 4978000 | To post : [email protected]|

OR

Mike Omuodo | Fast Media | Tel: +254 736 014 596| To post : [email protected]|

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Source: African Media Agency (AMA)

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