Nairobi, Kenya | 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 planned 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.
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The framework aligns ShafDB’s funding strategy with internationally recognised 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 recognises its strong contribution toward financing housing and urban infrastructure projects that deliver meaningful environmental and social benefits across Africa.
What will the bond support?
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.
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 mobilising 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 mobilised generate measurable environmental and social impact.”
Katerina Syngellakis, Africa Regional Director at GGGI, emphasised. “GGGI is proud to support Shelter Afrique Development Bank in establishing a Sustainable Finance Framework that will help mobilise 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.
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