Affordable Housing Credit Guarantee Program in Nigeria with initial debt financing guarantee structure with Infracredit Nigeria
Shelter Afrique Development Bank (ShafDB), a leading Pan-African institution committed to financing and advancing housing, urban, and related infrastructure development is delighted to announce its innovative Affordable Housing Credit Guarantee Program in Nigeria, fully approved by its Board of Directors.
The innovative financing structure has begun with the first pilot transaction of ₦aira three billion (₦3 Billion) debt financing guarantee for Modern Shelter Systems and Services Limited (“Modern Shelter”) 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 ₦aira 200 billion Affordable Housing Credit Program in Nigeria. Early last year, ShafDB proceeded with a debut ₦aira 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 the Housing Solution Fund (HSF), to address the demand side, we are closing the loop on de-risking the housing ecosystem and value chain.
Also Read: United States Housing Act of 1937