- Nigeria pays US$7.15 million to acquire a larger stake in Shelter Afrique.
- Nigeria’s total shareholding is up to 15.8 per cent, putting it one percentage point behind the top shareholder, Kenya, whose holdings currently amount to 16.85 per cent
- Shelter Afrique is a collaboration of 44 African governments, the African Development Bank (AfDB), and the Africa Reinsurance Corporation (Africa-Re)
Nigeria pays US$7.15 million to acquire a larger stake in Shelter Afrique.
Shelter Afrique, a pan-African housing development financier, recently acquired further capital contribution from the Federal government of Nigeria.
The newly acquired stock brings Nigeria’s total shareholding up to 15.8 per cent, putting it one percentage point behind the top shareholder, Kenya, whose holdings currently amount to 16.85 per cent.
African Development Bank (AfDB), which now stands at 12.16 per cent down from 12.71 per cent, Mali at 5.3 per cent down from 5.54 per cent, and Ghana at 5.05 per cent down from 5.28 per cent are the other top three owners in Shelter Afrique, whose shareholdings have now changed.
Kingsley Muwowo, the Managing Director and Chief Financial Officer of Shelter Afrique Ag., praised the Nigerian government for its vote of confidence in the organisation. He went on to say that the move puts When Nigeria has fulfilled all of its capital obligations, the government will be in an excellent position to take over as the majority shareholder in Shelter-Afrique.
“We would like to express our appreciation to the government of Nigeria for the consistent support they have provided and the significance they have placed on the provision of affordable homes. We are very grateful to the Honorable 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 assistance and for honouring this substantial payment. In addition, we value the active participation of Nigeria’s shareholders and directors in our company,” Muwowo pointed out.
In recent years, there has been a noticeable expansion in the link that exists between Nigeria and Shelter Afrique, a Pan-African housing construction funder. The increased capital subscription from Nigeria was worth US$9.4 million USD and was received by the organisation in September of 2020.
Swaziland and Burkina Faso are two other countries that have so far increased their capital subscriptions for the Pan-African housing development financier in 2022. These countries paid a total of US US$317,854.54 and US US$34,610.00, respectively, for additional stakes in the venture.
“As of this moment, additional funding in the amount of US$7,504,295.45 has been provided to us by member states within the last half of 2022. We would like to express our gratitude to our shareholders for providing this necessary injection of capital, which will go a long way toward strengthening the capital structure of the Company in order to support the ongoing fund-raising efforts that are being made to raise additional debt capital that is required to support the project pipeline, which now totals US US$1 billion across 44 member countries,” Muwowo said.
“This will go a long way in supporting the ongoing fund-raising efforts to raise additional debt capital required to support the project pipeline, which now stands at US US$1 billion across 44 member countries.”
Fundraising efforts
Shelter Afrique recently finished its first bond issuance in Nigeria’s capital market, which was a 46 billion nairas ($110.7 million) Series 1 Fixed Rate Senior Unsecured Bond Issuance. This was done as part of Shelter Afrique’s 200 billion nairas ($481.3 million) bond issuance programme, which will be used for the development of housing and urban areas in Nigeria.
Shelter Afrique was able 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) because the dual-tranche bond issuance was oversubscribed by 60.7%, with the order book peaking at 64.3 billion (US $154.6 million). This allowed Shelter Afrique to raise an additional 40 billion (US $96.3 million).
The high rate of oversubscription is evidence that investors have faith in Shelter Afrique’s mission to facilitate the construction of housing in Africa, as well as the institution’s excellent management team, business plan, and credit profile.
The company intends to issue comparable bonds in East African markets such as Kenya, Uganda, Tanzania, and Rwanda in the near future.
About Shelter Afrique
Shelter Afrique is the only pan-African financial company that focuses solely on providing assistance for the construction of new homes and the expansion of existing cities in Africa.
Shelter Afrique is a collaboration of 44 African governments, the African Development Bank (AfDB), and the Africa Reinsurance Corporation (Africa-Re).
Its mission is to support the effective delivery of affordable housing and commercial real estate by providing a host of products and related services, as well as building strategic partnerships.
Its work for housing and habitat in Africa has a direct and beneficial impact on the lives of many people by addressing the requirements of the continent’s rapidly expanding urban population. This allows us to make a difference in people’s everyday lives.
Read: NCBA partners with Shelter Afrique to finance properties in 5 counties
