Thierno-Habib Hann, Managing Director of Shelter Afrique Development Bank. Photo/courtesy.
Shelter Afrique Development Bank’s Sustainable Finance Framework has received confirmation from S&P Global Ratings that it aligns with international standards for green, social and sustainability bonds.
The confirmation covers the International Capital Market Association’s Green Bond Principles, Social Bond Principles and Sustainability Bond Guidelines. S&P Global Ratings has also published the framework alongside its corresponding Second-Party Opinion.
The validation comes as ShafDB prepares to issue bonds in West Africa and East Africa to raise sustainable capital for housing and urban development projects across the continent.
The framework was developed with technical assistance from the Global Green Growth Institute through the Global Trust Fund for Sustainable Finance in collaboration with the Duchy of Luxembourg. It establishes the criteria ShafDB will use when issuing Green, Social and Sustainable financing instruments.
The framework also aligns with the Loan Market Association’s Green and Social Loan Principles, giving the development bank a structure for accessing sustainable finance across African and international capital markets.
S&P Global Ratings’ independent Second-Party Opinion found that the framework supports projects delivering environmental and social benefits, particularly in housing and urban infrastructure.
The eligible projects will include affordable housing for low and middle-income households, socially inclusive housing, green residential buildings, energy and water-efficient housing and climate-resilient housing infrastructure.
ShafDB says the financing will help address Africa’s housing deficit while supporting climate resilience, environmental sustainability and inclusive economic development.
The framework will support the bank’s planned inaugural FCFA bond programme in the West African Economic and Monetary Union regional capital market as well as future thematic bond issuances across Africa.
ShafDB Managing Director Thierno-Habib Hann said the independent assessment strengthens the bank’s position as it seeks to mobilise sustainable capital for housing and urban development.
“As an independent Second-Party Opinion, this rating reflects and further confirms our alignment with international best practices and reinforces ShafDB’s strategy to finance projects with meaningful environmental and social impact, while mobilizing sustainable capital for affordable housing, climate resilience, and urban development across Africa,” said Hann.
He also acknowledged the support of GGGI and other service providers in developing the framework.
ShafDB Director of Treasury Nabil Mahfoudh said the framework will help the bank diversify its funding sources and access the growing sustainable finance market.
“This Framework provides ShafDB with a strong platform to access the rapidly growing sustainable finance market and diversify our funding sources,” said Mahfoudh.
He said the framework will support the bank’s plans to issue Green, Social and Sustainability Bonds while ensuring that funds raised generate measurable environmental and social impact.
GGGI Africa Regional Director Katerina Syngellakis said the framework could help direct more capital towards affordable and climate-resilient housing across Africa.
“GGGI is proud to support Shelter Afrique Development Bank in establishing a Sustainable Finance Framework that will help mobilize capital towards affordable, climate-resilient and inclusive housing across Africa,” said Syngellakis.
The development comes as African countries face growing demand for housing and urban infrastructure, increasing the need for long-term financing that can support both development and climate objectives.
