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Shelter Afrique Development Bank (ShafDB) has signed a $120 million (Sh15.5 billion) agreement with the Arab Bank for Economic Development in Africa (BADEA) to support its capital increase subscription initiative.
The Pan-African institution focuses on affordable housing and urban development. The facility will support the ShafDB capitalisation programme and help eligible member States settle and increase their capital subscriptions.
This initiative, developed in partnership with the BADEA, introduces an innovative financing mechanism through which eligible member states can access on-lending at competitive terms.
“This agreement with BADEA marks a critical step in strengthening our capital base and advancing our mission of financing affordable housing and sustainable urban infrastructure across Africa,” said Shelter Afrique Development Bank Managing Director Thierno Habib-Hann.
“We are grateful to BADEA for its strong partnership and unwavering support in this pivotal phase of our institutional evolution.”
The new capital increase programme includes an initial equal allocation to all member States, followed by a phased reallocation, first on a pro-rata basis, and then on a first-come, first-served basis.
The approach aims to encourage active participation by member States and strengthen ShafDB’s capital adequacy in a balanced and transparent manner.
“We see this capital programme as a strategic milestone in Shelter Afrique Development Bank’s evolution. BADEA is proud to back this initiative, and we remain committed to our shared mission of enabling access to decent housing and inclusive urban development across Africa,” said the President of BADEA Abdullah Almusaibeeh.
The need to enhance equity capital has become critical following the institution’s transformation into a development bank.
This was formally approved by Shelter Afrique’s shareholders during the Extraordinary General Meeting held in Algiers, Algeria, in October 2023.
Building on this transformation, a significant achievement was realised during the Annual General Meeting in June 2024 in Kigali, Rwanda, where shareholders endorsed a capital increase of over $200 million (Sh25.8 billion).
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