Shelter Afrique Development Bank (ShafDB) has closed a FCFA60 billion sustainable bond in the West African Economic and Monetary Union (WAEMU) regional market to finance affordable and sustainable housing across its eight member countries.
The bank said the proceeds from its first local-currency sustainable bond issuance will be dedicated exclusively to housing projects across the region. The transaction attracted the International Finance Corporation (IFC) and Ecobank Group, through Ecobank Senegal, as anchor investors, with the West African Development Bank (BOAD) among the participating financial partners.
Subscriptions ran from October 7 to 30, 2026. The bond comprises a five-year tranche carrying an interest rate of 6.10 per cent and a seven-year tranche at 6.30 per cent. CGF Bourse acted as lead arranger while UCA served as co-lead manager.
The transaction marks an effort to mobilise regional capital for housing while reducing reliance on foreign-currency financing.
Bond targets housing deficit in West Africa
According to estimates cited by the World Bank Group in the announcement, the WAEMU region faces a housing deficit of approximately 3.5 million units, with nearly 250,000 additional units needed annually.
ShafDB said the first phase of the bond is expected to support a pipeline of sustainable housing projects covering 17,554 housing units and create 87,772 jobs across the region.
The proceeds will finance affordable, sustainable and energy-efficient housing. By raising funds in local currency, the bank aims to match financing with the currency of project revenues and reduce borrowers’ exposure to foreign-exchange risk.
ShafDB Managing Director Thierno-Habib Hann said the transaction brought African and international institutions together to mobilise long-term capital for housing.
“With a housing deficit of over 53 million units, no single institution can close this gap alone,” Hann said, adding that the bank intended to replicate the financing model across Africa.
IFC and Ecobank anchor the issuance
The IFC and Ecobank Group anchored the bond, providing institutional backing for the transaction. ShafDB also signed an agreement with the IFC for its anchor investment on the sidelines of the 2026 African Financial Summit in Angola.
IFC Managing Director Makhtar Diop said the partnership would help connect available capital with long-term housing investment.
“Africa has the capital to finance more of its own housing needs. The opportunity is to connect those savings with long-term investment that can put more families in homes, strengthen local businesses and create jobs,” Diop said.
Ecobank Group Chief Executive Officer Jeremy Awori said housing investment could support a wider economic value chain spanning construction materials, developers, mortgage providers and homebuyers.
The partnership brings together commercial, regional and international financial institutions to support housing finance in the WAEMU market.
Sustainable finance framework backs the bond
ShafDB developed its Sustainable Finance Framework with the Global Green Growth Institute (GGGI) to guide the issuance of green, social and sustainable financing instruments.
According to the bank, S&P Global Ratings gave the framework a favourable opinion, finding it fully aligned with internationally recognised market principles. These include the International Capital Market Association’s Green Bond Principles and Sustainability Bond Guidelines, as well as the Loan Market Association’s Green and Social Loan Principles.
The transaction was also approved by the regional financial markets regulator, AMF-UMOA, and the Central Bank of West African States (BCEAO).
GGGI Africa Regional Director Katerina Syngellakis said the issuance demonstrated how African capital markets could help finance inclusive, low-carbon and climate-resilient development.
For ShafDB, the FCFA60 billion bond provides a financing channel for sustainable housing while seeking to deepen local capital markets. Its longer-term significance will depend on how effectively the proceeds translate into completed homes, jobs and improved access to affordable housing across the region.
