(Ecofin Agency) – Shelter Afrique obtained in 2018 a new repayment deadline for its commercial debt contracted with 8 financial institutions. With the debt now cleared, the company is looking for new resources in the debt market.
Shelter Afrique repaid three years ahead of schedule all of its commercial debt contracted with eight financial institutions, including two commercial banks and six development finance institutions. Media sources report that the Pan-African Housing Finance and Development Corporation claims to have repaid the loan (principal and interest) of $ 186 million to its creditors.
In 2018, Shelter reached an agreement to restructure its debt to the eight financial institutions, including the African Development Bank (AfDB), the French Development Agency (AFD), the Commercial Bank of Africa (CBA), the Bank European Investment Bank (EIB), KfW, the International Bank of Ghana (GHIB), the West African Development Bank (BOAD) and the Islamic Development Corporation. A new repayment term of five years has been negotiated as of June 2019.
“Despite the debt restructuring agreement giving us a window to fully repay the loan by June 2024, we have successfully repaid all loans by June 2021. This was made possible thanks to the new structures we have. put in place to address bad debts and loan collections as part of our recovery plan, ”said Andrew Chimphondah, Managing Director and CEO of Shelter Afrique Group.
The institution also claims to have repaid a bond issued on the Nairobi Stock Exchange between 2013 and 2018. It is now considering raising new funding by issuing bonds.
“With the debts fully repaid, we now intend to mobilize a local currency equivalent of $ 500 million each from Nigeria and East Africa, as well as $ 250 million from French-speaking African countries. These will be crucial to fund our demand side pipeline of up to $ 1 billion that we are currently developing, ”Chimphondah said.
“Over the past few months, we have raised a significant amount from our current shareholders, admitted a new shareholder (African Solidarity Fund -FSA), and decided to open a new class C shareholder group for entities not in order to broaden our shareholding and capital resource bases, ”added the Managing Director.