The Arab Bank for Economic Development in Africa (BADEA) has approved USD 120 million to support the capitalization program of Shelter Afrique Development Bank.
- •The concessional financing facility will help eligible member states settle and increase their capital subscriptions to ShafDB.
- •This initiative, developed in partnership with the Arab Bank for Economic Development in Africa (BADEA), introduces an innovative financing mechanism through which eligible member states can access on-lending at competitive terms.
- •The BADEA-supported facility, totaling USD 120 million, will be used to settle and boost member states’ capital subscriptions to Shelter Afrique Development Bank (ShafDB).
“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 Thierno Habib-Hann, Managing Director of Shelter Afrique Development Bank.
The new capital increase program 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. This approach aims to encourage active participation by member states and to strengthen ShafDB’s capital adequacy in a balanced and transparent manner.
The president of BADEA Abdullah KH ALMUSAIBEEH, “We see this capital program 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.”
The need to enhance equity capital has become critical following the institution’s transformation into a Development Bank.
The capital increase program has been designed to significantly strengthen ShafDB’s balance sheet over the medium-term, expand its shareholder capital base, and to significantly mobilize debts.
The capital will also support the Bank’s plans to attain investment-grade credit ratings, attract new institutional investors, and expand its lending and technical assistance programs in member countries.
