Shelter Afrique seeks CMA nod in bond issuance

Pan-African affordable housing firm Shelter Afrique has approached the Capital Markets Authority (CMA) as it seeks the regulator’s nod before issuing a local bond for its housing projects.

The firm is seeking to tap regional capital markets and pension funds to finance the construction of affordable houses across East Africa.

The local currency medium-term notes are set to be issued in Kenya, Uganda, Tanzania and Rwanda.

“We want to approach it as an East African 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,” noted Shelter Afrique Acting Managing Director Kingsley Muwowo.

Muwowo is betting on the strategy to lock in pension funds including the National Social Security Fund (NSSF) to invest in housing projects in the region.

Shelter Afrique has been angling to tap up to Ksh.61.4 billion ($500 million) from pension funds to finance housing projects across the continent.

Earlier this year in April, the Nairobi headquartered firm raised Ksh.13.5 billion ($110 million) from a local currency bond issuance in Nigeria.