Shelter Afrique Board has approved a line of credit worth US$9 million in housing loan to Lagos-based Wema Bank Plc.
The 7-year facility due for repayment in 2027 will be used for onward lending to developers and home buyers who wish to purchase single units on an owner-occupier basis and Employee Assisted Mortgage Scheme. Also, the loan will create mortgages for the purchase of affordable housing within the range of 16 million Naira (US$40,000) and 32 million Naira (US$80,000), home completion, home improvement, or home extension.
Shelter Afrique Group Managing Director and CEO Andrew Chimphondah said sealing the deal was a positive step in addressing the housing shortage in Nigeria.
“Nigeria is facing an estimated housing shortfall of over 20 million units and Shelter Afrique works closely with the relevant authorities to help address this shortage through government and private sector initiatives. The extension of the US$9 million loan to Wema Bank reaffirms our commitment to the provision of affordable housing solutions to the citizens of Nigeria,” Mr. Chimphondah said.
Wema Bank Plc Chief Executive Officer Ademola Adebise said the line of credit goes further to cement the long partnership between the two institutions.
“Wema Bank has enjoyed a great working relationship with Shelter Afrique since 2014 when the Bank signed the first line of credit worth US$10m. We are pleased to partner with Shelter Afrique again and we look forward to a longer-term relationship,” Mr. Adebise added.
Nigeria remains one of the key partners and markets for Shelter Afrique. In 2020, the Company received $9.4 million from the Federal Republic of Nigeria, being the first tranche of theUS$29.3 million the country had committed in an additional capital subscription.
Conversely, the Company is currently considering a $3 million equity participation in the newly created Nigeria Mortgage Guarantee Company (NMGC) having already helped to create the Nigeria Mortgage Refinance Company (NMRC).
Other housing projects the Company is considering are a 60,000 homes Public-Private-Partnership with the Kaduna State government. The project is expected to create 300,000 jobs.
The Company is also planning to issue Local Currency Bonds amounting to 200 billion Naira (US$ 500M) to finance its robust pipeline in the country.