Shelter Afrique Development Bank has announced the postponement of its planned $500 million bond issuance to 2026, citing unfavorable global interest rate conditions.
The decision reflects growing concerns over rising borrowing costs that continue to pressure emerging market issuers and complicate long-term capital raising efforts.
Initially planned for late 2025, the bond was expected to boost Shelter Afrique’s capital base and expand its housing finance portfolio across Africa.
However, the bank noted that prevailing global financial conditions, especially elevated yields in the international debt markets, made it unviable to proceed with the issuance at this time without compromising the institution’s long-term financial stability.
The bank, which focuses on funding affordable housing and urban infrastructure in Africa, remains committed to pursuing the bond once market conditions improve.
It is banking on interest rate normalization and a more favorable macroeconomic climate in 2026 to deliver a successful and cost-effective issuance.
In the meantime, Shelter Afrique is actively engaging with institutional investors and development partners to bolster confidence and secure alternative funding.
The bank is also revising its capital mobilization strategy to align with current financial dynamics while ensuring it can continue delivering housing projects across member states without interruption.
The postponement comes at a time when global capital markets have tightened significantly, with many emerging market borrowers facing higher risk premiums.
Shelter Afrique acknowledged that it does not want to pass on increased financing costs to its end beneficiaries, many of whom are low- to middle-income households.
While the delay marks a cautious approach, the bank has reassured stakeholders that its pipeline of housing projects remains intact and that alternative short-term financing will be used to maintain momentum.
Efforts to improve credit ratings, enhance operational transparency, and diversify funding sources are underway to prepare for the eventual bond issue.
Shelter Afrique views the decision as a strategic pause rather than a setback, emphasizing that fiscal prudence remains key to its mission of delivering sustainable housing solutions across the continent.
Written By Ian Maleve
