Shelter Afrique fully repays commercial debts, eyes regional bonds
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 $186 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 $155 million and a debt-equity ratio of 0%, we can instantly raise new debt of up to $465 million,” said Andrew Chimphondah, Managing Director and CEO, Shelter Afrique Group.
The company has also repaid a bond floated on the Nairobi Stock Exchange between 2013 and 2018.