Emmanuel OchayiAgusto & Co. Limited, Nigeria’s Credit Rating Agency, has assigned ‘A(ken)’ and ‘A+(ngr)’ ratings to Shelter Afrique Development Bank (ShafDB), to address Africa’s housing crisis and driving affordable housing demands and supply across the continent.
The agency has also reaffirmed ‘A+(ngr)’ ratings for Shelter Afrique’s Series I Tranche A 5-Year ₦27.18 billion 13% & Tranche B 7-Year ₦18.82 billion 13.25% Bonds issued in April 2022.
Agusto & Co. Limited praises Shelter Afrique’s critical developmental mandate, shareholder support, and its multipronged strategy.
Shelter Afrique Development Bank, formerly known as Shelter Afrique, is a Pan-African institution dedicated to financing and promoting housing, urban, and related infrastructure development across the African continent.
READ ALSO: ShafDB Boosts Housing in Guinea With $12m Line Of Credit
It operates through a partnership involving 44 African governments, the African Development Bank (AfDB), and the Africa Reinsurance Corporation (Africa-Re). Shelter Afrique Development Bank plays a pivotal role in addressing Africa’s housing crisis through financial institutions, project finance, and public-private partnerships, aiming to achieve sustainable developmental impact.
In a commentary, the agency stated, “The ratings reflect Shelter Afrique’s critical developmental mandate, shareholder support, strong representation of beneficiary countries among members, and multipronged strategy to drive affordable housing demand and supply in Africa.”
The rating agency emphasized that Shelter Afrique’s continued growth and improvement hinge on expanding the development portfolio, ensuring efficacy in capital contributions, and upholding good governance.
“The company’s adequate capitalization for near-term business risks, satisfactory liquidity profile, and very low leverage (and improved capacity to attract funding)” were cited as contributing factors to the impressive rating.
Shelter Afrique Development Bank, in alignment with its objectives, unveiled its “New Dawn” plan for the next five years. This plan necessitated a re-alignment of the organization and introduced a new organizational structure and operating model to support the institution’s innovation, growth, and productivity ambitions.
The institution’s shareholders also approved revised statutes to elevate Shelter Afrique into a dynamic Development Bank, marking a historic transformation that promises to reshape the landscape of African housing and urban development.
In a statement, Shelter Afrique Development Bank expressed its commitment to these goals, saying, “These strongly positive ratings are in line with our 2023 – 2027 strategic objectives in which we set to position the institution for growth through improved governance, operational, and financial performance. Our elevation into a Development Bank now sets the stage for a renewed, innovative, and impactful Shelter Afrique.”
Follow Us