Shelter Afrique has raised $ 110.7 million Series 1 fixed rate senior unsecured debut bond issuance in Nigeria’s Capital Market.
This is under the mortgage lender’s $ 481.3 million bond issuance programme.
FSDH Capital Limited, a leading investment banking and securities trader and subsidiary of FSDH Group, led the successful financial close.
This dual-tranche bond issuance was 60.7% oversubscribed, with the order book reaching $154.6 million. Shelter Afrique thus exercised a greenshoe option and raised $ 14.4 million more than the planned amount of $96.3 M.
FDSH Capital, which led the bond issuance, ensured that the exercise was successful. Others in the issue included FCMB Capital Markets Limited, United Capital Plc and ARM Securities Limited, which all acted as joint issuing houses.
Aluko & Oyebode and Banwo & Ighodalo were the Solicitors, while United Capital Trustees Limited was Trustee and CardinalStone Registrars Limited was the Registrar
Stanbic IBTC PLC, FSDH Merchant Bank Limited, and United Bank for Africa Plc were the receiving banks.
Shelter Afrique, the Pan-African financial institution, was established to finance affordable housing projects across Africa, including the provision of sustainable housing projects.
The mortgage lender’s shareholders comprise Fonds de Solidarité Africain (FSA), 44 member states in Africa, African Re-Insurance Corporation and Accra-based African Development Bank.
Kingsley Muwowo, Shelter Afrique’s Acting Managing Director, said the lender is coming into Nigeria’s debt capital market for the first time due to this market’s attractiveness.
He assured investors that the bond issue proceeds would be used while creating more value for them.