By Barbara Nwaiwu
S&P Global Ratings has confirmed that the Sustainability Finance Framework of Shelter Afrique Development Bank (ShafDB) is fully aligned with the International Capital Markets Association (ICMA) Green Bond Principles, Social Bond Principles and Sustainability Bond Guidelines, strengthening the Bank’s preparations to raise sustainable financing for affordable housing projects across Africa.
The validation and the official publication of ShafDB’s Sustainable Finance Framework and the corresponding Second-Party Opinion (SPO) were announced on Thursday, ahead of the Bank’s planned West Africa FCFA bond issuance and East Africa multi-currency bonds.
According to ShafDB, the framework was developed with technical assistance from the Global Green Growth Institute (GGGI) through the Global Trust Fund (GTF) for Sustainable Finance in collaboration with the Duchy of Luxembourg.
The Bank said GGGI supported the development of the framework by identifying eligible project categories, aligning it with international market standards and strengthening ShafDB’s readiness to access sustainable capital markets.
ShafDB said the framework aligns its funding strategy with internationally recognised standards, including the ICMA Green Bond Principles, Social Bond Principles, Sustainability Bond Guidelines and the Loan Market Association (LMA) Green and Social Loan Principles.
The independent Second-Party Opinion issued by S&P Global Ratings confirmed that the framework meets international market standards and acknowledged its contribution to financing housing and urban infrastructure projects that provide environmental and social benefits across Africa.
According to the Bank, proceeds from the planned bond issuances will finance and refinance eligible projects, including affordable housing for low- and middle-income households, socially inclusive housing projects, green residential buildings, energy-efficient and water-efficient housing, and climate-resilient housing infrastructure.
ShafDB said the investments are expected to help address Africa’s housing deficit while promoting climate resilience, environmental sustainability and inclusive economic development in line with the United Nations Sustainable Development Goals (SDGs).
The Bank added that the publication of the framework supports its forthcoming sustainable bond issuances, including its inaugural FCFA bond programme in the West African Economic and Monetary Union (WAEMU) regional capital market and future thematic issuances across the continent.
Commenting on the development, Managing Director and Chief Executive Officer of Shelter Afrique Development Bank, Thierno-Habib Hann, said, “As an independent Second-Party Opinion (SPO), 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. We thank our Partners, GGGI and other service providers, for their invaluable support.”
Director of Treasury at Shelter Afrique Development Bank, Nabil Mahfoudh, said, “This Framework provides ShafDB with a strong platform to access the rapidly growing sustainable finance market and diversify our funding sources. It will support our strategy of issuing Green, Social and Sustainability Bonds in African and international capital markets while ensuring that the funds mobilized generate measurable environmental and social impact.”
Katerina Syngellakis, Africa Regional Director at GGGI, said, “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. This milestone demonstrates the growing role of sustainable finance in addressing development challenges while advancing climate goals.”
ShafDB said the milestone forms part of its ongoing institutional reform programme and reaffirms its commitment to working with global and regional partners to expand sustainable housing finance across Africa.
