Rating Release
Agusto & Co. hereby upgrades the “Aa-(ngr)” national scale rating assigned to Shelter Afrique’s Tranche A 5-Year ₦27.18 billion 13% and Tranche B 7-Year ₦18.82 billion 13.25% Senior Unsecured Bonds (“the Bond” or “the Issue) to “Aa(ngr)”.
The rating expires on 20 April 2026
Agusto & Co. hereby upgrades the “Aa-(ngr)” national scale rating assigned to Shelter Afrique’s (“SHAF” or “the Issuer”) Tranche A 5-Year ₦27.18 billion 13% and Tranche B 7-Year ₦18.82 billion 13.25% Senior
Unsecured Bonds (“the Bond” or “the Issue) to “Aa(ngr)”. The Bond forms the Series I issuance under SHAF’s ₦200 billion Domestic Bond Issuance Programme (“the Programme”). The rating assigned to the Issue mirrors the standalone national scale rating of the Issuer as the Bond represents a senior unsecured obligation that ranks pari passu with other senior unsecured debts. Agusto & Co. upgraded the Issuer’s “Aa-(ngr)” rating to “Aa(ngr)” in October 2025. The rating upgrade is based on the enhanced equity position, following the approval of the Arab Bank for Economic Development in Africa (BADEA’s) US$120 million facility that will support the Issuer’s strategic growth initiatives. In addition, the rating is also hinged on SHAF’s multilateral legal ownership and relationship with 44 African Governments and the critical developmental mandate to drive affordable housing demand and supply in Africa. We have also considered the impending treaty-based establishment of Shelter Afrique Development Bank (SHAFDB) replacing the existing Act of Parliament foundation which should raise the Issuer to a preferred creditor status in the near to medium term. Furthermore, SHAF’s low leverage and adequate capitalization profiles support the rating. However, the Issuer’s rating remains constrained by low profitability and weak asset quality which has been negatively impacted by legacy delinquent loans.
