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How FSDH Capital Successfully Packaged Shelter Afrique Naira Bond

Under the N200 billion (US$481.3 million) bond issuance programme by Shelter Afrique, an investment banking and securities trading subsidiary of FSDH Group, FSDH Capital has led a successful financial close of the N46 billion (US$110.7 million) Series 1 Fixed Rate Senior Unsecured Bond Issuance in Nigeria’s capital market.

Shelter Afrique, a pan-African development finance agency solely committed to delivering affordable and adequate housing finance across Africa, was founded by African governments to address the continent’s demand for a sustainable housing delivery system and accompanying infrastructure projects.

Its shareholders include 44 African countries, the African Development Bank, the African Re-Insurance Corporation, and Fonds de Solidarité Africain (FSA).

Shelter Afrique
AIHS 2022

The dual tranche bond sale was oversubscribed by 60.7 percent, with an order book peaking at N64.3 billion (US$154.6 million), enabling Shelter Afrique to exercise the ‘green shoe’ option and raise an additional N6 billion (US$14.4 million) more than the original N40 billion plan (US$96.3 million).

Speaking about the transaction, the Managing Director of FSDH Capital Limited, Mr. Tolu Osinibi, said, FSDH Capital is pleased to have advised Shelter Afrique on its successful debut bond issuance in Nigeria’s capital market.

“Shelter Afrique continues to play a pivotal role in housing development across Africa and the success of the bond issuance will encourage other supranational financial institutions to tap Nigeria’s debt capital market for their Naira funding needs, he said.

“We thank the investor community for their support on the bond issuance. We also thank the Board and management of Shelter Afrique for trusting us with this milestone transaction, and their commitment and dedication throughout the process”.

In his words and while announcing the result during the signing ceremony held in Lagos, Nigeria, Shelter Afrique’s Acting Managing Director, Kingsley Muwowo said “this is the first time Shelter Afrique is tapping the Nigerian debt capital market and the positive market reception is a clear indication of investor confidence in our long-term value proposition for the Nigerian housing market.

“We would like to assure our investors that we shall put the proceeds of the bond issue into good use that will ensure that more value is created for them”.

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