Shelter Afrique resumes underwriting of new businesses

Shelter Afrique MDPan-African housing financier Shelter Afrique has reached an agreement with the lenders that the company was ready to resume new business

This was announced at the 38th Annual General Meeting held on 20 June 2019 in Marrakech, Morocco.

Appraising shareholders at the AGM, Shelter Afrique managing director and CEO Andrew Chimphondah said that the company had negotiated and concluded debt restructuring agreement with all the eight lenders, comprising of two commercial banks and six development finance institutions. Additionally, the company had restructured the US$108mn debt to be repaid over a five-year period from the existing loan book and not from members’ contributions.

“This has enabled us to regularise the servicing of principal debt obligations with our lenders post the standstill agreement period which expired in July 2018. The conclusion of debt restructuring exercise is particularly important in that it now opens an avenue for us to explore new funding options,” Chimphondah said.

Chimphondah further added that the company had completed it restructuring programme and was in the process of implementing its new 2019-2013 strategic plan which broadly focuses on financial stability, enhanced shareholders value and organisational sustainability.

According to him, the primary focus is turning around the company’s financial performance from loss-making to financial viability by 2020 and overall financial sustainability by 2023.

The shareholders have let the company to raise new capital through equity and debt options to fund its operations in the next five years of its strategic plan, through direct funding (line of credit), co-financing and bridge finance for working capital lines.

“We have been given green light by shareholders and we’ll soon kick-off a roadshow to that effect. Already, we have started off a process of identifying active member countries for local currency bonds starting 2021. We are also working on restoring equivalence of Moody's Ba1 credit rating, after which we’ll consider tapping into Eurobond market for modest ticket issues of up to US$300mn on committed project lines,” Chimphondah explained.

Shareholder unanimously re-elected Daniel Nghidinua as the chairman of the Board of Director for the next two years.

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