S&P confirms Shelter Afrique Development Bank’s new green bond compliance

S&P Global Ratings has confirmed that Shelter Afrique Development Bank’s (ShafDB) Sustainability Finance Framework is fully aligned with the International Capital Markets Association (ICMA) Green Bond Principles, Social Bond Principles and Sustainability Bond Guidelines.

The ratings agency also announced the official publication of the framework and its corresponding Second-Party Opinion (SPO). The validation comes as the bank prepares to issue a West Africa FCFA bond and East Africa multi-currency bonds to help close Africa’s growing housing deficit.

Developed with technical assistance from the Global Green Growth Institute (GGGI) through the Global Trust Fund for Sustainable Finance in collaboration with the Duchy of Luxembourg, the framework sets out ShafDB’s approach to issuing Green, Social and Sustainable (GSS) financing instruments. GGGI worked with the bank to identify eligible project categories, align the framework with international market standards and strengthen its readiness to access sustainable capital markets.

The framework is consistent with the ICMA Green Bond Principles, Social Bond Principles, Sustainability Bond Guidelines, and the Loan Market Association’s Green and Social Loan Principles.
In its independent Second-Party Opinion, S&P Global Ratings confirmed the framework’s alignment with international standards and recognised its strong potential to finance housing and urban infrastructure projects that deliver environmental and social benefits across Africa.

Proceeds from the planned bond issuances will support the financing and refinancing of eligible projects, including affordable housing for low- and middle-income households, socially inclusive housing, green residential buildings, energy- and water-efficient housing, and climate-resilient housing infrastructure. These investments are intended to address Africa’s housing shortfall while advancing climate resilience, environmental sustainability and inclusive economic development in line with the United Nations Sustainable Development Goals.

The publication of the framework underpins ShafDB’s upcoming sustainable bond programme, including its inaugural FCFA bond in the WAEMU regional capital market and future thematic issuances across the continent.

Thierno-Habib Hann, Managing Director of Shelter Afrique Development Bank, said the independent Second-Party Opinion “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 mobilizing sustainable capital for affordable housing, climate resilience, and urban development across Africa. We thank our Partners, GGGI and other service providers, for their invaluable support.”

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Nabil Mahfoudh, Director of Treasury at the bank, added: “This Framework provides ShafDB with a strong platform to access the rapidly growing sustainable finance market and diversify our funding sources. It will support our strategy of issuing Green, Social and Sustainability Bonds in African and international capital markets while ensuring that the funds mobilized generate measurable environmental and social impact.”

Katerina Syngellakis, Africa Regional Director at GGGI, said: “GGGI is proud to support Shelter Afrique Development Bank in establishing a Sustainable Finance Framework that will help mobilize 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.”

ShafDB continues to pursue an ambitious reform pathway and reaffirm its commitment to working with global and regional partners. The Sustainable Finance Framework and the S&P Global Ratings Second-Party Opinion are available on the Shelter Afrique Development Bank website and through S&P Global Ratings.