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Shelter Afrique approves USD19.5 Million credit line to Mixta Afrique for affordable housing projects in Nigeria
Shelter Afrique approves USD19.5 Million credit line to Mixta Afrique for affordable housing projects in Nigeria.
– The facility will also help Mixta Africa repay part of a short-term loan raised from the capital market.
Nairobi: September 14, 2022
Pan-African housing development financier Shelter Afrique has extended USD19.5 million (₦8 billion) line of credit to Lagos-based real estate firm, Mixta Real Estate PLC.
The 7-year facility with a moratorium of 24 months has been structured to co-finance Mixta’s affordable residential projects investments and for debt refinancing.
USD9.75 (₦4 billion) will be used to co – finance 1,171 affordable housing units comprising on-going Beechwood Park project (187 units) and New Marula projects (984 units). The other USD9.75 (₦4 billion) will be used to repay part of Mixta’s 7-months Commercial Papers raised from the capital market in a bid to reduce the aggregate Commercial Papers outstanding from ₦ 17.9billion to ₦13.9billion.
“The deal with Mixta Real Estate PLC is appealing to us because in addition to addressing the development of affordable it also it stimulates rapid growth in housing provision, re-invigorates the development of the mortgage industry, as well as incorporating a sustainable development finance solution that makes the sector attractive to financiers,” Shelter Afrique Ag. Managing Director Kingsley Muwowo said.
Commenting on the deal, Mixta Africa, Executive Director and Chief Financial Officer, Mr Benson Ajayi said enabling access to housing and home ownership at affordable prices is the company’s main priority.
“The funding from Shelter Afrique is a validation of Mixta Africa’s housing and infrastructure development credentials. We are pleased to receive this funding approval after a rigorous due diligence process. In addition to accelerating the delivery of sustainable and affordable housing, the transaction will also strengthen the company’s funding status. The Company is delighted about the support of Shelter Afrique and looks forward to working with Shelter Afrique to deliver on its affordable housing mandate across Africa,” Mr. Ajayi said.
Other projects
Shelter Afrique has had long term relationship with Mixta Africa dating back to the year 2014 when the Company extended USD 6 million to Mixta (formerly ARM Properties PLC) to co-finance the development of 13 blocks comprising 130 apartments and related infrastructures services for outright sale to the public. The project was successful completed and the loan full paid back.
In March 2021, Shelter Afrique Board of Director approved a corporate loan in form of line of credit of USD 13 million in favor of Mixta. The 5- year facility was to be on-lent to Mixta’s Real Estate Development affiliates to fund the Group’s current real estate portfolio composed of three key housing developments programs of 889 low to middle housing units in Morocco (371 units), in Senegal (162 units) and in Ivory Coast (356 housing units).
“We are jointly reviewing a few terms and conditions of this facility at the moment and loan agreements between the two parties is expected will be signed soon,” Mr. Muwowo said.
The facility is expected to directly impact more than 1,171 families and provide accommodation for more than 4,684 people (average size of households in Lagos is 3.8) and create at least 2,342 jobs.
Notes to Editor
Shelter Afrique
Shelter-Afrique is a pan African housing finance and development institution established by African governments to address the need for a sustainable housing delivery system and related infrastructure projects in Africa. Shareholders include 44 African countries, the African Development Bank, the African Re-Insurance Corporation, and Fonds de Solidarité Africain (FSA).
The company’s mandate is to provide financing through debt, quasi-equity, and equity to both public and private institutions for housing and urban infrastructure projects in its member countries. Shelter Afrique builds strategic partnerships and offers a host of products and related services to support the efficient delivery of affordable housing and commercial real estate. These include project finance, institutional lending, equity investments & joint ventures, trade finance, and social housing.
We also offer practical advice and technical assistance to a wide range of industry stakeholders
For more information, please visit http://www.shelterafrique.org/
Follow Shelter Afrique on Twitter, LinkedIn and Facebook
Mixta Africa
Mixta Real Estate Plc is a Pan-African real estate development company headquartered in Lagos, Nigeria. It was established in 2005 and since then, has successfully executed many impactful projects. The company is currently present in 8 countries across Africa with full operations in Nigeria, Senegal, Côte d’Ivoire, Morocco, and Tunisia but with projects in Mauritania, Algeria and Egypt.
https://mixtafrica.com
For further enquiries, please contact:
Babatunde Oyateru | Communications Manager | Shelter Afrique| Shelter Afrique Centre | Longonot Road – Upper Hill| Tel: +254 20 4978000 | Email: boyateru@shelterafrique.org|
Or
Mike Omuodo | Executive Director| Media Fast PR | Tel: +254 736 014 596| Email: mike.omuodo@mediafast.co.ke|
Shelter Afrique approves USD19.5 Million credit line to Mixta Afrique for affordable housing projects in Nigeria
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Director Kiiza Ephraim Bichetero
Academic Qualifications
Global Executive Master of Business Administration Degree, United States International University in collaboration with the Colombia Business School – Kenya.
Credit & Political Risk Insurance by Euro Money.
Associated Chartered Insurance Institute (London) -United Kingdom.
Bachelor of Arts (BA), Makerere University – Uganda
Skills & Competencies
Mr. Ephraim Kiiza K. Bichetero has held leadership roles in several institutions and brings a wealth of experience in matters Re-Insurance audit, risk, and finance.
Administration
Impeccable knowledge of reinsurance
Insurance & Finance Competence
Audit, Governance & Risk Expertise
Board Experience
Member and Chairperson of the Board of Directors of the Company for Habitat & Housing in Africa (Shelter Afrique) – 2021-2022.
Member of the Board of Africa Trade Insurance Agency (ATI)
Member of the Audit, Governance & Risk Management Committee for Insurance Training & Education Trust (ITET).
Member of the Board of Organization of East & Southern Africa Insurers.
Member of the Risk Evaluation Committee for the Insurance Regulatory Authority, Kenya.
Technical & Reinsurance Manager of United Assurance Company Ltd. (UAP Insurance).
Nigeria to host Shelter Afrique’s 42nd AGM in May 2023
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Shelter Afrique Appoints New Chief Executive Officer
Shelter Afrique Appoints New Chief Executive Officer
– Mr. Theirno Habib brings to the Company more than 20-years experience in housing finance, capital markets and structured finance.
Nairobi, Kenya: 15 August, 2022
Nairobi-based pan African housing development financier Shelter Afrique has appointed Thierno-Habib Hann as the new Chief Executive Officer to succeed Mr. Andrew Chimphondah who left the company early this year.
Mr. Hann currently serves as the Asia/Pacific Lead for housing finance at the International Finance Corporation (IFC), based in Bangkok, where he leads the strategy development and implementation of the housing finance program with a portfolio of over USD 2 billion.
He previously held a similar position, in charge of Africa and the Middle East, based in Nairobi.
Commenting on the appointment, Shelter Afrique Chairman Mr. Ephraim Bichetero said the selection process was very competitive, based on merit and competence.
“Mr. Hann has extensive international experience in housing finance, capital markets and structured finance, set-up and management of investment funds with banking and multilateral institutions, spanning over 20 years. He brings with him a wealth of leadership experience in development and investment, sharp insight in real estate landscape and a strong track record of delivery. Over the years, he has developed housing finance transactions in the US, Latin America and Eastern Europe, valued over USD 32 billion,” Mr. Bichetero said.
“He is expected to strengthen governance, be an embodiment of our values and drive the investment strategy of the Company focused on delivering large-scale affordable housing,” He added.
Welcoming his appointment, Mr. Hann said he was excited at the opportunity to lead Shelter Afrique through its next face of growth.
“I’m happy and honoured to take on the new role at Shelter Afrique, particularly as many African countries face significant turning point in their housing agenda. It is an honour to lead this team at this critical moment and together we will work towards harnessing national resources to improve local populations’ living conditions and to achieve Shelter Afrique’s mandate,” Mr. Hann said.
Hann began his career at the consulting firm Arthur Andersen, LLC as a Senior Consultant in Financial Services and Capital Markets in New York City.
LHe has worked at JPMorgan Chase and Goldman Sachs as Manager and Vice President respectively and led investment teams issuing mortgage-backed securities (RMBS/CMO), credit derivatives (CDS) in these organizations.
He also served at the World Bank Group as the Private Sector Development Program Manager in Guinea, responsible for designing and implementing the business climate improvement program, while developing a bankable pipeline of investments and government advisory projects in strategic sectors of the economy.
Habib holds an MBA in Finance & Investments from the Zicklin School of Business, Bernard Baruch, New York City; a master’s degree in Accounting and Finance (M.S.T.C.F) and a bachelor’s degree in Management and Applied Economics (GEA), from Paris IX Dauphine University, with honors.
A native of Guinea (Conakry), Hann is the co-founder of “AngelAfrica” – a pan African investment platform formed to achieve economic prosperity on the continent by building and fostering innovative technological ideas, investors and business mentors.
Mr. Hann will join the organization at the end of his current contract with IFC. In the interim Mr. Muwowo will continue to serve as Acting Managing Director.
Shelter Afrique records US$1.04M in net profit for the year 2021
Shelter Afrique records US$1.04M in net profit for 2021
– The announcement was made at the Company’s 41st AGM held in Zimbabwe.
– Shareholders also approved the appointment of Mr. Thierno-Habib Hann as the Company’s new Managing Director.
Victoria Falls, Zimbabwe – July 28, 2022
Pan African housing development financier Shelter Afrique has posted an operating profit of US$ 1.04 million up from operating loss of US$ 0.58 million the Company recorded in 2020, backed by impairment recoveries and effective cost control measures.
The Company contained its operating expenses at US$ 8.04 million in 2021 down from US$ 8.44 million in 2020, representing a 10% decline. It also reined in its operating expenses which dropped from US$ 8.35 million in 2020 to US$ 7.71 million in 2021.
The Company’s gross income, however, declined slightly to US$12.09 in 2021, down from US$13.94 recorded in 2020.
Addressing Shareholders at the 41st Annual General Meeting held in Victoria Falls, Zimbabwe, Shelter Afrique Chairman Mr. Ephraim Bichetero said the transformational initiatives undertaken by the Company and its business’ resilience enabled the Company to weather the COVID storm.
“This profit continues to build on Shelter Afrique’s commitment to returning to full Financial Sustainability, one of the Company’s 3 Strategic Goals, along with Enhancing Shareholder Value & Development Impact and Organisational Sustainability. I wish to commend the board, management and staff for their continued efforts towards achieving the desired results ahead of time,” Mr. Bichetero said.
The AGM which kicked off on July 25 under the theme: Climate Change and the Built Environment, in reference to the Glasgow Conference of Parties (COP26), will close on July 30.
Financial Viability
In the 2019-2023 Strategic Plan, the Company projected a return to financial viability by 2020 and overall financial sustainability and profitability by 2023, a feat that it achieved two years ahead of schedule.
“Our 2021 financial performance, despite the macroeconomic and socio-political environment, is an indication that the turnaround plan recommended by the board and approved by shareholders continues to be the north-star on our course to returning to financial stability and viability. As management, we are encouraged by this and look forward to the challenge of the coming years,” said Shelter Afrique Group Ag. Managing Director and Kingsley Muwowo.
During the year under review total assets declined by 5 per cent from US$ 176.68 million in 2020 to US$ 167.31 Million in 2021, attributed to the 100 per cent reduction in settlement of the total debt following the repayment of US$ 34.71 Million.
Liquidity decreased by 33% per cent from US$ 47.41 million in 2020 to US$ 31.59 million in 2021, attributed to significant debt servicing payments on the CFA Bond and DRA debt amounting to US$ 35.87 million. However, the liquidity ratio still remained strong, closing at 19 per cent, which is 4 per cent points above the minimum threshold of 15 per cent.
Shareholder Funds increased by 19 per cent from US$135.74Million in 2020 to US$ 161.60 Million in 2021 due to the new capital subscriptions of US$24.85 million and the profit of US$ 1.04 Million for the year. This increase brings the total paid-up capital by 15 per cent, from US$ 157.29 million in 2020 to US$ 182.14 million in 2021.
“We are grateful to our shareholders for their unwavering support through the continued capitalisation of the Company, with US$ 24 million received in 2021 against a target of US$ 17 million. The receipt of these funds was achieved amidst severe fiscal constraints, and we are conscious of this,” Mr. Muwowo said.
Mr. Muwowo added that the Company would continue to review various capital raising options, including new equity capital and debt options through the issuance of local currency bonds to develop and deepen Africa’s capital markets.
“We recently completed a debut ₦46 billion (US$110.7 million) Series 1 Fixed Rate Senior Unsecured Bond Issuance in Nigeria’s capital market under its ₦200 billion (US$481.3 million) bond issuance programme for housing and urban development in Nigeria. We plan similar bond issuance in East African markets including Kenya, Uganda, Tanzania and Rwanda,” Mr. Muwowo said.
New Managing Director
Meanwhile, Shelter Afrique shareholders have approved the appointment of Thierno-Habib Hann as the company’s new Managing Director. Mr. Hann will replace Mr. Andrew Chimphondah who left the company in February.
Mr. Hann has extensive international experience in housing finance, capital markets and structured finance, set-up and management of investment funds with banking and multilateral institutions. Currently, he is the Asia-Pacific Lead for housing finance & capital markets at the International Finance Corporation (IFC), based in Bangkok and previously in charge of Africa and the Middle East, based in Nairobi.
“The process was very competitive, and Mr. Hann was selected based on merit and competence. He is expected to strengthen governance, be an embodiment of our values and drive the investment strategy of the Company focused on delivering large-scale affordable housing,” Mr. Bichetero said.
Mr. Hann will join the organization once he completes his current contract with the International Finance Corporation. In the interim Mr. Muwowo will continue to serve as Acting Managing Director.
Shelter Afrique 2021 Annual Report
PDF – ( 9.7 MB )
Mr. Yankho Chitsime
Mr. Yankho Chitsime has 14 years’ experience in executive management and deals making in the affordable housing space, including principal investing, property development, project finance advisory work, debt capital raising, and financial management in South Africa and numerous countries across the African continent. Yankho holds a BBA in Accounting (Andrews University, Michigan, USA), Postgraduate training in Property Development (UCT, RSA) and Management Development (GIBS, RSA).
Mr. Bernard Oketch
Bernard is a Kenyan national. He holds a Master’s Degree in Business Administration majoring in strategic management from the University of Nairobi and a Bachelor Degree in Business Information Technology from Strathmore University. He has over twelve years of work experience in enterprise risk management.
He previously worked for Deloitte & Touche in the Risk Advisory practice for nine years from 2007 to 2016 before joining the Co-operative Bank of Kenya, a top tier one bank, as a Senior Risk Manager, where he worked for three years before joining Shelter Afrique. His key achievements include many years of developing and implementing enterprise risk management programmes.