The board of directors of Shelter Afrique Development Bank (ShafDB) has approved the establishment of a programme to issue Sh64.61 billion ($500 million) bonds across the East African capital markets.

This marks a significant step towards the launch of the regional debt instrument, which had been held back due to unfavourable market conditions.

A disclosure by the Pan-African housing financier said that the establishment of the East African Bond Issuance Programme was among key decisions by its board.

“The board of directors exercised rigorous oversight through several landmark resolutions designed to expand the bank’s footprint and financial resilience. In addition, the board approved the establishment of the East African Bond Issuance Programme to access local currency markets,” the lender says.

“The board’s approval of the East African Bond Issuance Programme marks a strategic pivot toward local currency sustainability. By accessing domestic institutional capital—including pension and insurance funds—the Bank reduces foreign exchange risk while deepening regional capital markets, a strategy aligned with World Bank housing finance frameworks.”

The Nairobi-headquartered institution had in 2024 declared plans to issue medium-term notes in Kenya, Uganda, Tanzania and Rwanda that were to be listed on the Nairobi Securities Exchange.

The plans were later postponed in 2025, with the management citing high interest rate conditions in the targeted markets, which were not conducive to achieving optimal pricing.

‘In line with our prudent financial strategy, we opted to wait for a more favourable environment and to strengthen our market position,” the lender told Business Daily last year.

Shelter Afrique said it would issue the bond in tranches beginning in 2026, with each tranche having a term of five to seven years.

The institution has been restructuring its balance sheet and operations to make it attractive to investors.

Before making an issuance, companies usually engage potential investors to gauge the price the market is willing to pay, in what is called book-building. This may have influenced ShafDB’s decision to wait.

The development bank has disclosed it will issue the bond in different markets in East Africa to protect itself from forex exposure.

Shelter Afrique earlier said proceeds from the bonds would be invested in Kenya, Rwanda, Uganda, and Tanzania. The institution has housing projects and investments in mortgage refinance companies in multiple African markets.

Africa’s housing deficit of about 52 million units remains one of the continent’s most pressing development challenges.

The continent’s rapid urbanisation, demographic growth, and infrastructure gaps continue to place significant pressure on governments and financial systems alike.

Shelter Afrique last issued a bond in Kenya in 2013, a five-year note of Sh5 billion at an interest rate of 12.75 percent.

The Nairobi-based housing financier is owned by 44 African countries, including Kenya, and two financial institutions: the African Development Bank and African Reinsurance Corporation.

janyanzwa@ke.nationmedia.com