Connect with us

African News

Shelter Afrique fully repays commercial debts, eyes regional bonds

Published

on

Shelter Afrique fully repays commercial debts

Shelter Afrique fully repays commercial debts, eyes regional bonds

Nairobi, Kenya- 21 September 2021 – Pan-African housing development financier Shelter Afrique has fully paid commercial debts owed to eight lenders, giving the company the leverage to underwrite new debt.

In 2018, Shelter Afrique signed a Debt Restructuring Agreement with the eight lenders – six DFIs and two commercial banks – to restructure its debt with a new 5 – Year tenor to run from June 2019 to June 2024.

The USD186 million (including accrued interest) owed to African Development Bank, Agence Française de Developpement, Commercial Bank of Africa, European Investment Bank, German KFW, Ghana International Bank, CFA-Banque Ouest Africaine de Development, and Islamic Corporation for Development was fully repaid three years ahead of schedule.

“Despite Debt Restructuring Agreement giving us a window to make full loan repayment by June 2024, we successfully repaid all the loans by June 2021. This was possible due to the new structures we put in place to deal with bad debts and loan recoveries as part of our turnaround plan. This now affords us the ability to underwrite new business and debt without constraints and legacy matters. For instance, based on our current Equity Capital base of USD 155M and a debt-equity ratio of 0%, we can instantly raise new debt of up to USD 465 million,” Shelter Afrique Group Managing Director and CEO Andrew Chimphondah said.

The company has also repaid a bond floated on the Nairobi Stock Exchange between 2013 and 2018.

 Return to market

Mr Chimphondah noted that following the development, Shelter Afrique now plans to return to the capital market to raise KES125 billion (USD1.25 billion) in local-currency bonds by the end of the year.

“With the debts fully retired, we now intend to mobilise a local-currency equivalent of USD500 million each from Nigeria and East Africa, as well as USD250 million from French-speaking African nations.  These will be crucial in funding our demand-side pipeline of as much as USD1 billion which we are currently developing,” Chimphondah said

Mr Chimphondah added that besides the bonds, Shelter Afrique was exploring further shareholder financing, noting that the Company was already in talks with some keen organisations and countries who share a similar commitment to affordable housing in Africa.

“In the past few months, we have raised a significant amount from our current shareholders, admitted a new shareholder (Fonds de Solidarité Africain -FSA), and resolved to open a new class C group of shareholding for non-African entities to widen our shareholding and capital resource bases,” Mr Chimphondah said.

Do you have any news to share with us? WhatsApp us via +233558210224.
Or email us via [email protected].

Continue Reading
Click to comment

Comment on this

African News

Late Osinachi’s husband Peter Nwachukwu charged with death sentence

Published

on

Peter Nwachukwu charged

Late Osinachi’s husband Peter Nwachukwu charged with death sentence

News coming from Nigeria confirms that the Nigerian Federal Government has filed 23-count charges against Peter Nwachukwu, husband of the late popular gospel singer, Osinachi, who died on April 8 this year after he allegedly assaulted her.

After the demise of the “Ekueme” singer, several reports came in that her husband is the cause of his death. A Series of testimonies also came from Peter’s children, Osinachi’s sisters, and parents which all proved that Peter was an abusive man.

He was therefore charged under sections 104 and 379 of the Administration of Criminal Justice Act, 2015, by the Attorney-General of the Federation.

The defendant was charged with culpable homicide contrary to section 221 of the Penal Code which is punishable with death by hanging.

Some of the testimonies accused Peter of beating and stomping her wife’s abdomen on several occasions.

The accusations were so serious that even his children confirmed that Peter Nwachukwu used to beat their mom when she was alive.

Do you have any news to share with us? WhatsApp us via +233558210224.
Or email us via [email protected].

Continue Reading

African News

Did you know Cornrows were used by slaves to escape slavery?

Published

on

Cornrows were used by slaves to escape

Did you know Cornrows were used by slaves to escape slavery?

Cornrows were used by slaves to escape slavery: Cornrows that have found their way in the modern hairstyle among women were used by slaves to transfer information and create maps to exit from their masters.

During the moment slaves were not given the opportunity to write or read and so they developed tactics in passing information through cornrow.

This hairstyle is believed to have originated from the Southern American nation Columbia in the 1500s when Benkos-Bioho curated this design idea of using the cornrow hairstyle to create maps in order to deliver messages. Cornrows were also called canerows to mean the sugarcane fields that slaves worked in.

One style had curved braids, tightly braided on their heads. The curved braids would represent the roads they would use to escape.

Also in their braids, they kept gold and hid seeds which helped them survive after they escaped. They would use the seeds to plant crops once they were liberated.

Cornrows were the best way to not give back any suspicion to the owner. He would never figure out such a hairstyle would mean they would escape or the route they would take.

This hairstyle has now become a dominant fashion among women, especially among African women. It is the simplest hairstyle to go with. It’s best for wearing hair wigs.

 


Culled from: Black History Moment

Do you have any news to share with us? WhatsApp us via +233558210224.
Or email us via [email protected].

Continue Reading

African News

Nigeria commits to pay off US$28.7 million capital arrears in Shelter Afrique

Published

on

Nigeria Finance Minister Dr Zainab Shamsuna Ahmed and Shelter Afrique MD Andrew Chimphondah

Abuja – January 11, 2022: The Federal Republic of Nigeria has pledged to pay the full capital arrear of US$28.7m in Shelter Afrique, Nigeria’s Finance Minister Dr. Zainab Shamsuna Ahmed disclosed at a meeting with Shelter Afrique Group Managing Director and CEO Mr. Andrew Chimphondah in Abuja.

The Minister further disclosed that the payment will be made in four installments starting January 2022.

In September 2020, the pan African housing development financier received US$$9.4 million from Nigeria. The contribution moved Nigeria to become the second-largest shareholding in the organization with 13.27% of the shareholding, behind Kenya with 17.78%, and ahead of the AfDB at 12.83%.

Lauding the government of Nigeria for its show of confidence in the institution and a stamp of approval for the organisation’s financial turnaround, Mr. Andrew Chimphondah said, “This is a major milestone which is set to propel Nigeria to become the largest shareholder in Shelter-Afrique when the country meets its capital commitment. This is a strong testament of the strong shareholder commitment and support of the Shelter Afrique Board and Management.”

Housing Bond

Shelter Afrique is planning to raise 250 Billion Naira Bond (US$500million) in 2022 to support its affordable housing projects in Nigeria. The Company is set to commence the road shows with prospective investors in January 2022 and is expected to conclude fundraising by end of February.

Shelter Afrique has embarked on a defined strategy of developing and deepening local capital markets so that access to local currency which is competitively priced can be made available to Nigerian Developers from the Real Estate Developers Association of Nigeria (REDAN), Large Developers and Tier 1 and Tier 2 Banks and Primary Mortgage Lenders. The significance of this is that Shelter-Afrique will have been successful in dealing with the foreign exchange exposure risks that have crippled many African countries caused by the weakening of local African currencies against hard currencies such as the United States Dollar and the British Pound Sterling,” Mr. Chimphondah said.

Thanking the Finance Minister Dr. Zainab Shamsuna Ahmed for supporting the Bond Issue by the approvals received on critical waivers from the Ministry of Finance, Mr. Chimphondah noted that Nigeria was a critical and strategic market for Shelter Afrique, adding that the fund realized from the bond issue will go a long way in address the affordable housing shortage in the country, now estimated at 17 Million Units against the continent’s 56 million units.

“As a response to addressing this housing shortage, Shelter Afrique will implement a transformative strategy that will crowd in additional capital funding into the low cost large scale affordable housing market in a commercially viable manner,” Mr. Chimphondah concluded.

Do you have any news to share with us? WhatsApp us via +233558210224.
Or email us via [email protected].

Continue Reading

Trending

%d bloggers like this: