ShafDB approved to issue bonds to raise funds for housing project
Business
By
James Wanzala
| Aug 11, 2026
Shelter Afrique Development Bank’s (ShafDB) has received a nod to issue bonds as a way of mobilising capital to fund its housing project in Africa.
The approval comes after S&P Global Ratings confirmed that Shelter's Sustainability Finance Framework fully aligns with the International Capital Markets Association (ICMA) green and social bond principles and sustainability bond guidelines.
The rating firm also announced the official publication of ShafDB’s framework and the corresponding Second-Party Opinion (SPO).
The framework, developed with the technical assistance of the Global Green Growth Institute (GGGI), through the Global Trust Fund (GTF) for Sustainable Finance, establishes the bank's comprehensive framework for the issuance of green, social and sustainable (GSS) financing instruments.
The framework further identifies eligible project categories, aligning it with international market standards and strengthening the bank's readiness to access sustainable capital markets.
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It also aligns ShafDB's funding strategy with internationally recognised market principles, including the ICMA green and social bonds principles, sustainability bond guidelines and the LMA green and social loan principles.
The independent SPO, issued by S&P Global Ratings, confirms that the framework is aligned with international market standards and recognises its strong contribution toward financing housing and urban infrastructure projects that deliver meaningful environmental and social benefits across Africa.
The bond issuance will support the financing and refinancing of eligible projects in sectors 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.
These investments directly contribute to addressing Africa's housing deficit while supporting climate resilience, environmental sustainability and inclusive economic development in line with the United Nations Sustainable Development Goals (SDGs).
The validation comes ahead of the bank’s planned issuance of the West Africa FCFA bond and the East Africa multi-currency bonds, as it enhances financing to bridge the growing housing deficit in Africa.
ShafDB said the framework supports its upcoming 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 Africa.
"As an independent 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 mobilising sustainable capital for affordable housing, climate resilience, and urban development across Africa," said Thierno-Habib Hann, the managing director of Shelter Afrique Development Bank.
Nabil Mahfoudh, the director of Treasury at ShafDB, said the framework provides the institution with a strong platform to access the rapidly growing sustainable finance market and diversify its funding sources.
"This will support our strategy of issuing green, social and sustainability bonds in African and international capital markets while ensuring that the funds mobilised generate measurable environmental and social impact," said Mahfoudh.
Katerina Syngellakis, Africa Regional Director at GGGI, said the framework will be vital in mobilising capital.
"GGGI is proud to support Shelter Afrique Development Bank in establishing a Sustainable Finance Framework that will help mobilise 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."