Shelter Afrique to float bonds worth KSh 1.25 Billion

Shelter Afrique plans to return to the market to raise US $1.25 Billion in local-currency bonds by the end of 2021.

This happens as the Nairobi-based Pan-African Mortgage Financier emerges from a crippling management crisis that barred it from borrowing years ago.

The mortgage lender intends to mobilize a local-currency equivalent of US$500 Million each from Nigeria and East Africa, as well as US$250 Million from French-speaking African nations.

Its Chief Executive Officer Andrew Chimphondah said Shelter Afrique targets separately to raise US$500 million from multilateral development financial institutions over the next five years.

“We cannot disclose specific institutional details; however, sufficient to say the said DFIs stand ready to support us with competitively priced and longer tenured funding,” he said.

About five years ago, Shelter Afrique fell into a liquidity crisis that saw several senior executives exit over allegations of misappropriation of funds.

It has since repaid a bond that was floated on the Nairobi Stock Exchange between 2013 and 2018.

Shelter Afrique provides long-term credit lines for primary-mortgage lenders, housing micro-finance institutions and re-financiers, including Tanzania Mortgage Refinance Co. and Togo-based CRRH.

“We are now developing a demand-side pipeline of as much as $1 billion across 25 of its 44 shareholding nations,” Chimphondah said.

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