Browsing: Nigeria’s stake in Shelter Afrique

Nigeria pays $7.15 million to acquire a larger stake in Shelter Afrique. www.theexchange.africa

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.