NIGERIA – Shelter Afrique, a Pan-Africa housing development financier, has received US$7.15 million in additional capital subscription from the Federal Government of Nigeria taking its shareholding to 15.8%, one-percentage point behind top shareholder Kenya, which currently stands at 16.85%.
The other top three shareholders of Shelter Afrique whose shareholdings now change include African Development Bank (AfDB), which now stands at 12.16% down from 12.71 %; Mali at 5.3% down from 5.54%; and Ghana at 5.05% down from 5.28%.
The relationship between Nigeria and Shelter Afrique has been growing in recent years. In September 2020, the institution received US$9.4 million additional capital subscription from Nigeria.
Other countries that have so far ramped up capital subscription in the Pan-African housing development financier in 2022 are Swaziland and Burkina Faso which paid US$317,854.54 and US$34,610.00
Shelter Afrique Ag. Managing Director & Chief Finance Officer Kingsley Muwowo said the move now places Nigeria in a good position to become the largest shareholder in Shelter-Afrique when the country fully meets its capital commitment.
“We are grateful to the government of Nigerian for their continued support and the importance they have placed on affordable housing,” Mr. Muwowo said.
“We are especially grateful to the Honourable Minister for Works and Housing Babatunde Fashola, Honorable Minister for State, Engineer Abubakar Aliyu, and Honorable Minister for Finance Dr. Zainab Shamsuna Ahmed, for their long-term support and for honouring this significant payment.
“Additionally, we appreciate Nigeria’s active shareholder and board participation.”
Mr Muwowo added that they have received US$7,504,295.45 in additional capital so far, from member States within the last six months of 2022.
“We are grateful to our shareholders for this much needed capital injection which will go a long way in strengthening the capital structure of the Company to support the ongoing fund-raising efforts to raise additional debt capital required to support project pipeline which now stands at US$1 billion across 44 member countries.”
Shelter Afrique recently completed a debut ₦46 billion (US$110.7 million) Series 1 Fixed Rate Senior Unsecured Bond Issuance in Nigeria’s capital market under its ₦200 billion (US$481.3 million) bond issuance programme for housing and urban development in Nigeria.
The dual tranche bond issuance was 60.7% oversubscribed with the order book peaking at ₦64.3 billion (US$154.6 million), enabling Shelter Afrique to exercise the ‘green shoe’ option and raise an additional ₦6 billion (US$14.4 million) more than the original ₦40 billion plan (US$96.3 million).
The oversubscription rate demonstrates investors’ 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.
The Company plans similar bond issuance in East African markets including Kenya, Uganda, Tanzania and Rwanda.
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