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Shelter Afrique Development Bank (ShafDB) has successfully closed its inaugural FCFA 60 billion sustainable bond, raising approximately $100 million to finance affordable and sustainable housing projects across member countries of the West African Economic and Monetary Union (WAEMU).

The bond, the first sustainable issuance by the pan-African development finance institution in the regional market, attracted strong demand from a broad mix of investors during the subscription period from 7 to 30 October 2026.

The transaction comprises a five-year tranche offering a 6.10% return and a seven-year tranche at 6.30%. CGF Bourse served as lead arranger, while UCA acted as co-lead manager. The International Finance Corporation (IFC) and Ecobank Group, through Ecobank Senegal, participated as anchor investors, with the West African Development Bank (BOAD) among the key financial partners.

ShafDB said the proceeds will be used exclusively to finance affordable, sustainable and energy-efficient housing projects across the WAEMU region, helping address a significant housing shortfall while promoting environmentally responsible urban development.

According to estimates cited by the World Bank Group, the WAEMU region faces a housing deficit of approximately 3.5 million units, with demand growing by nearly 250,000 homes annually.

The first phase of the financing programme is expected to support a pipeline of 17,554 housing units and create an estimated 87,772 jobs across the region.

Speaking after signing an agreement for IFC's anchor investment on the sidelines of the 2026 African Financial Summit (AFIS) in Angola, IFC Managing Director Makhtar Diop said Africa possessed substantial domestic savings that could be channelled towards addressing the continent's housing challenges.

“Africa has the capital to finance more of its own housing needs. The opportunity is to connect those savings with long-term investment that can put more families in homes, strengthen local businesses and create jobs,” Diop said. He described the partnership with ShafDB as an important step towards developing deeper local capital markets capable of financing housing development across the continent.

Ecobank Group Chief Executive Officer Jeremy Awori said the transaction demonstrated the benefits of regional collaboration in addressing housing needs and supporting the broader housing value chain.

ShafDB Managing Director Thierno-Habib Hann said the successful issuance illustrated how African and international institutions could work together to mobilise long-term domestic capital for housing development.

“With a housing deficit of over 53 million units, no single institution can close this gap alone,” Hann said. “That is why we structured this transaction with commercial, regional and international partners to accelerate access to affordable, sustainable housing and invest in the broader housing value chain.”

He added that the partnership with IFC, Ecobank, BOAD and other stakeholders provides a model that could be replicated in other African markets.

A key feature of the local-currency bond is that it aligns financing with project revenues, reducing borrowers' exposure to foreign-exchange risk while supporting the growth of regional capital markets.