- It issued a similar-sized $500 million (Sh54.8 billion) bond in Nigeria last week on Thursday.
- This comes after the company recorded a net profit of Sh203.10 million ($1.85 million) in the year ended December.
Pan African housing development financier Shelter Afrique is set to issue Sh54.8 billion ($500 million) local currency bond in the Kenyan market after a bounce to profitability in the year ended December 2020.
The firm has said the East Africa bond will be listed in Nairobi Securities Exchange (NSE) before the end of this year, with the proceeds to be deployed in Rwanda, Uganda and Tanzania.
It issued a similar-sized $500 million (Sh54.8 billion) bond in Nigeria last week on Thursday.
This comes after the company recorded a net profit of Sh203.10 million ($1.85 million) in the year ended December despite the economic downturn from the pandemic - a turnaround from Sh134 million ($1.26 million) loss recorded in a year earlier.
The company financing construction of affordable housing in 44 countries across Africa attributed this to declined impairments due to reduced loan books and operating costs.
“We are going into markets like Nigeria raising bonds and we will do the same in East Africa and in the Francophone region as well. We are looking at the appropriate products that need to be developed so that we can capitalize on directing the monies in pension funds and large institutions into low cost housing,” Shelter Afrique CEO Andrew Chimphondah said.
The company last year was also able to reduce its debt through restructuring agreement (DRA) debt with six development finance institutions (DFIs) and two commercial banks from $300 million in June 2019 to a balance of $33 million –set to be repaid by June 2021 latest, three years ahead of scheduled repayment of June 2024.
“With the reduced loans and the profit we are sure we will be very attractive,” Shelter Afrique chief finance officer Kingsley Muwowo said.