Shelter Afrique Development Bank (ShafDB) Board, headquartered in Nairobi, has approved a line of credit worth US$12 million in housing loan to Conakry-based Vista Bank Guinee SA.
Vista Bank Guinee SA will use the line of credit from Shelter Afrique to fund real estate developers and construction companies involved in the provision of affordable housing in the Republic of Guinea SMEs in the housing value chain.
The use of the funds will also be extended to individual customers of Vista Bank for housing construction and renovations.
Shelter Afrique Development Bank Managing Director Thierno Habib Hann said the agreement is aimed at tackling the housing deficit in the Republic of Guinea, with Shelter Afrique Development Bank (ShafDB) – enhancing its development influence to its Member States by providing cost-effective housing solutions.
Vista Bank Guinee Managing Director, Tirmidjiou Diallo said approval of the line of credit by Shelter Afrique marks the beginning of a long partnership between the two institutions, adding that the Bank had already secured a healthy pipeline of developers for the facility.
Under the loan agreement, the identified developers will have a maximum of 2 years to execute the projects. Once completed the developer’s clients will be granted a maximum of 8 years to repay the developers.
“Several projects are taking place, most notably a project that will begin implementing 1000 housing units’, whereby the first 200 units will benefit from this financing,” Diallo said.
The loan is guaranteed by Vista Group Holdings SA, Vista Bank Guinee’s parent company headquartered in Burkina Faso with offices in The Gambia, Sierra Leone, Guinee, and Burkina Faso.
Vista Group Holding SA has entered into strategic partnerships with various global financial institutions to drive its growth strategy by focusing on MSME (SME banking, leasing, microfinance, banking on women), trade and supply chain finance, and bancassurance.