The double-tranche bond issue was oversubscribed by 60.7% with an order book peaking at ₦64.3 billion ($154.6 million), allowing Shelter Afrique to exercise the option to “green shoe” and raise an additional ₦6 billion (US$14.4 million) above the initial plan of ₦40 billion (US$96.3 million).
FDSH Capital acted as lead issuing house and played a critical role in ensuring the transaction reached a successful financial close, while ARM Securities Limited, FCMB Capital Markets Limited and United Capital PLC acted as as joint issuing houses for the issuance of bonds. Other professional parties include Aluko & Oyebode and Banwo & Ighodalo who acted as Issuance/Issuer Solicitors and Trustee Solicitors respectively, United Capital Trustees Limited and CardinalStone Registrars Limited acted as Trustee and Registrar respectively. Receiving banks include FSDH Merchant Bank Limited, Stanbic IBTC PLC and United Bank for Africa PLC.
Speaking about the transaction, Managing Director of FSDH Capital Limited, Mr. Tolu Osinibi said:
“FSDH Capital is pleased to have advised Shelter Afrique on its first successful bond issue in the Nigerian capital market. Shelter Afrique continues to play a pivotal role in housing development in Africa and the success of the bond issuance will encourage other supranational financial institutions to tap into the Nigerian debt capital market for their Naira financing needs. We thank the investment community for their support during the bond issuance. We also thank the Board of Directors and management of Shelter Afrique for trusting us with this historic transaction, as well as their commitment and dedication throughout the process.
Announcing the outcome at the signing ceremony held in Lagos, Nigeria, Shelter Afrique Acting Managing Director, Kingsley Muwowo said:
“This is the first time that Shelter Afrique has tapped into the Nigerian debt capital market and the positive market reception is a clear indication of investor confidence in our long-term value proposition for the Nigerian housing market. We want to assure our investors that we will use the proceeds of the bond issue wisely, which will ensure that more value is created for them.
He also noted that the issuance of naira-denominated bonds reflects the organization’s desire to focus on tailored and long-term financing solutions for the provision of affordable and adequate housing in Nigeria and across the country. Africa.
5-year Tranche A bonds at a price of 13.00% and 7-year Tranche B bonds at a price of 13.25%. With an AA rating from GCR Ratings and an A+ rating from Agusto & Co, the bond issue attracted participation from a wide range of institutional investors, including pension funds, banks and corporations. insurance. Bond tenors are aligned with the institution’s housing finance strategy and long-term plans in Nigeria. Shelter Afrique will use the proceeds of the bond to finance massive housing development by Tier 1 property developers and to provide lines of credit.
It should be noted that this is the first naira-denominated bond issue by a supranational organization in over 9 years and the oversubscription clearly reflects investors’ strong appetite for the Nigerian capital market.
To note: Official images of the signing ceremony are attached to this press release for publication. For further commentary, interviews or other engagement regarding the transaction; please contact:
About FSDH Capital Limited
FSDH Capital Limited, a subsidiary of FSDH Holding Company Limited, provides investment banking, debt solutions and securities trading services. The Company is licensed as a broker/dealer, issuer and portfolio manager by the Securities and Exchange Commission (“SEC”) and is a member of the Nigerian Exchange Limited (“NGX”) and FMDQ Securities Exchange Limited (“FMDQ”).
With experience advising and executing landmark transactions, FSDH Capital provides objective expert advisory and execution services across a wide range of industries, financial institutions and government institutions.