S&P Global Ratings has confirmed Shelter Afrique Development Bank’s (ShafDB) Sustainability Finance Framework fully in alignment with the International Capital Markets Association (ICMA) Green Bond Principles, Social Bond Principles, and Sustainability Bond Guidelines.
S&P Global Ratings has also announced the official publication of ShafDB’s Sustainable Finance Framework and the corresponding Second-Party Opinion (SPO).
The validation comes ahead of the Bank’s planed issuance of the West Africa FCFA bond and the East Africa multi-currency bonds, as it enhances financing to bridge the growing housing deficit in Africa.
The Sustainable Finance Framework, developed with the technical assistance of the Global Green Growth Institute (GGGI), through the Global Trust Fund (GTF) for Sustainable Finance in collaboration with the Duche of Luxembourg, establishes the Bank’s comprehensive framework for the issuance of Green, Social and Sustainable (GSS) financing instruments. GGGI has partnered with ShafDB in designing the Sustainable Finance Framework, identifying eligible project categories, aligning the Framework with international market standards and strengthening the Bank’s readiness to access sustainable capital markets.
The framework aligns ShafDB’s funding strategy with internationally recognized market principles, including the ICMA Green Bond Principles, Social Bond Principles, Sustainability Bond Guidelines, and the LMA Green and Social Loan Principles.
The independent Second-Party Opinion, issued by S&P Global Ratings, confirms that the Framework is aligned with international market standards and recognizes its strong contribution toward financing housing and urban infrastructure projects that deliver meaningful environmental and social benefits across Africa.
The bond issuance will support the financing and refinancing of eligible projects in sectors including affordable housing for low- and middle-income households; socially inclusive housing projects ; green residential buildings; energy-efficient and water-efficient housing; and climate-resilient housing infrastructure.
These investments directly contribute to addressing Africa’s housing deficit while supporting climate resilience, environmental sustainability and inclusive economic development in line with the United Nations Sustainable Development Goals (SDGs).
The publication of the Sustainable Finance Framework supports the Bank’s upcoming sustainable bond issuances, including its inaugural FCFA bond programme in the WAEMU regional capital market and future thematic issuances across Africa.
Commenting on this achievement, Thierno-Habib Hann, Managing Director of Shelter Afrique Development Bank, stated:
“As an independent Second-Party Opinion (SPO), this rating 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.”
Nabil Mahfoudh, Director of Treasury at Shelter Afrique Development 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, emphasized. “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 has been on an ambitious reform pathway, re-affirming 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 S&P Global Ratings.
About Shelter Afrique Development Bank (ShafDB)
Established in 1982 in Lusaka, Zambia and headquartered in Nairobi, Kenya, Shelter Afrique Development Bank (ShafDB) is a Pan-African Multilateral Development Bank (MDB) dedicated to promoting and financing sustainable housing, urban development and related infrastructure. It operates through a shareholding of 44 African governments and two institutional shareholders: The African Development Bank (AfDB) and African Reinsurance Corporation (Africa-Re).
The institution finances housing and related infrastructure across the housing value chain, both on the demand and supply sides, through its four (4) business lines: Financial Institutions Group (FIG), the Project Finance Group (PFG), the Sovereign and Public-Private Partnerships (PPP) Group, and the Fund Management Group (FMG).
About GGGI
The Global Green Growth Institute (GGGI) is an intergovernmental organization dedicated to supporting and promoting strong, inclusive and sustainable economic growth in developing countries and emerging economies. GGGI works with governments, financial institutions and private-sector partners to mobilize climate finance and accelerate the transition to low-carbon and resilient development.
