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South African ratings agency GCR has upgraded Shelter Afrique Development Bank’s (ShafDB) international scale long issuer rating to B from B-, affirming the short-term national scale issuer rating of **B** with a **Stable outlook**. This upgrade reflects the bank’s improved status, building track record of preferential creditor treatment, and strengthened membership base.
The upgrade comes on the heels of SHAFDB’s transformation into a development bank, a move that saw the institution revise its statutes and change its name from The Company for Habitat and Housing in Africa in October 2023.
This structural shift has solidified the bank’s legitimacy and operational framework, reinforcing confidence among members and potential investors.
GCR also upgraded the long and short-term national scale issuer ratings for several African nations: Kenya to AA-(KE)/A1+(KE) from A+(KE)/ A1(KE), Nigeria to AA+(NG)/A1+(NG) from AA(NG) / A1+(NG), and Mauritius to BB+(MU)/B(MU) from BB(MU)/ B(MU), all with a Stable outlook.
Additionally, GCR upgraded the Nigerian national scale long-term issue rating on the Series 1 Tranche A and Tranche B Senior Unsecured Notes, issued under Shelter Afrique’s ₦200 billion Domestic Bond Issuance Programme.
These bonds, issued with a Stable outlook, will be used to fund affordable housing development projects and lines of credit for housing developers in Nigeria.
“The upgrade of Shelter Afrique Development Bank’s ratings reflects improved status, building track record of preferential creditor treatment (PCT), and improved membership strength and diversity,” said GCR in a commentary. “These enhancements stem from its transition to a treaty-based establishment and strategic agreements aimed at addressing capital arrears.”
Shelter Afrique Development Bank Managing Director Mr. Thierno-Habib Hann expressed his satisfaction with the upgrade, stating, “We set out to position the institution for growth through transformation into a development bank which has so far yielded improved operational, and financial performance and governance. Our elevation into a Development Bank now sets the stage for a renewed, innovative, and impactful Shelter Afrique.”
Mr. Bernard Oketch, Head of Risk Management at SHAFDB, further emphasized the bank’s commitment to its transformative journey, noting, “Our resolve is to sustain the significant improvements in our capital and funding structure, asset quality, developmental impact and overall enterprise risk management.”
With 46 shareholders, including 44 member states, the African Development Bank (AfDB), and the Africa Reinsurance Corporation (Africa-Re), SHAFDB is well-positioned to continue its impactful work in promoting affordable housing and sustainable development across Africa.