Pan-African housing development financier Shelter Afrique on Friday announced that it is seeking to raise 121 billion shillings (about 1.1 billion U.S. dollars) through issuing bonds in local currency to fund low cost housing in the continent.
Andrew Chimphondah, CEO, Shelter Afrique, told journalists in Nairobi that in total it will issue three bonds in Africa.
“We are going to issue the bonds in local African currencies in order to avoid foreign exchange risk in case the currencies are devalued,” Chimphondah said when Shelter Afrique released its 2020 financial performance.
Shelter Afrique said that it will issue an equivalent of 500 million dollars bond in Nigeria in local currency in May.
Chimphondah said they also plan to raise another 500 million dollars through a local currency bond in the third quarter of 2021 in the east African region.
“The bond will be cross listed in the Kenya, Uganda, Tanzania and Rwanda capital markets in their respective local currencies,” he added.
He revealed that they will also issue an equivalent of 100 million dollars bond in local currency in the 14 countries in west and central Africa that use the CFA franc.
The fund will be used to solve the continent’s housing crisis caused by shortage of affordable houses. Enditem