In a USD 500 million housing bond, Shelter Afrique targets East African bourses and pension funds. The fund will finance affordable housing projects throughout Kenya, Rwanda, Uganda, and Tanzania.
KAMPALA, UGANDA | NOW THEN DIGITAL — Pan-African housing development financier Shelter Afrique is planning to finance affordable housing projects in East Africa with the help of pension funds and the East African capital markets, following the successful debut of its local currency bonds in Nigeria during the first quarter of this year.
- Shelter Afrique plans to tap into the East African capital markets and pension funds to finance affordable housing projects in the region following the successful debut of local currency bonds in Nigeria earlier this year.
- Kingley Muwowo, Shelter Afrique’s Managing Director, announced in Nairobi that the company was considering issuing local currency Medium Term Notes.
- In its member countries, the company provides debt, quasi-equity, and equity financing for housing and urban infrastructure projects.
- For the efficient delivery of affordable housing and commercial real estate, Shelter Afrique builds strategic partnerships and offers a variety of products and services. Project financing, institutional lending, equity investments, trade financing, and social housing are some of these.
During a recent presentation in Nairobi, Shelter Afrique’s Ag. Managing Director Kingsley Muwowo disclosed that local currency Medium Term Notes would be issued in Kenya, Uganda, Tanzania, and Rwanda.
“Already, we have opened negotiations with Kenya’s Capital Market Authority on the possibility of Shelter Afrique issuing another housing bond to support local housing projects and we plan to do the same with capital market authorities in Rwanda, Uganda and Tanzania.”
”We want to approach it as an East Africa issue- meaning we’ll issue Kenya Shilling bond, Uganda and Tanzania shillings bonds, and Rwandese Franc bond, subject to availability of bankable projects in each of the markets,” Mr Muwowo explained.
Mr Muwowo noted that such a strategy would make it easier for pension funds such as Kenya’s National Social Security Fund, Uganda’s National Social Security Fund, Rwanda’s Social Security Board, and Public Service Pensions Fund of Tanzania, to invest in housing projects in the region and earn decent returns.
“Our experience with the Nigerian bond debut is that pension funds present a viable option to tap funds for affordable housing projects. We equally believe they have the capacity to provide long term funding for such projects,” Mr Muwowo said.
Shelter Afrique has had ten successful local currency bond issues in Kenya dating back to the 2000s, which Mr Muwowo says, have been successfully retired – demonstrating the Company’s strong investment rating in terms of local currency issues.
Beyond cities: Shelter Afrique
Mr Muwowo said the Company was keen on extending housing projects financing beyond major cities and into rural areas, adding that every part of the countries should be able to benefit from housing projects funding.
“At the moment, we have housing projects in cities like Nairobi, Kisumu and Mombasa – in the case of Kenya, or Lagos and Abuja in the case of Nigeria. Our aim is to roll out housing projects all over the countries in member States. In Kenya, for instance, we are already in talks with the National Housing Corporation to implement this,” Mr. Muwowo said.
The Company has several projects in Kenya including Everest Park Apartments, Richland Point Apartment, Karibu Homes, Pine City and Sigona Valley in Nairobi; Lake Breeze Apartments and Translakes Apartments in Kisumu; and Eden Beach Apartments and KMA Housing Apartments in Mombasa.
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