InfraCredit has guaranteed N3 billion initial debt financing under a N12.5 billion debt programme for Modern Shelter Systems and Services Limited (Modern Shelter).
It is for the development of 370 affordable housing units according to IFC’s green building standard (EDGE) in Nasarawa Technology Village under a co-financing structure with the Shelter Afrique Development Bank (Shelter Afrique). This project aims to develop up to 1,200 EDGE-certified housing units in Nasarawa State.
This transaction is the first housing project to be executed under the InfraCredit’s Affordable Housing Funding Programme (the Programme). The Programme seeks to address the funding constraints faced by developers resulting from the lack of an institutional mechanism to provide both developers and homebuyers with access to affordable funding required to make both home financing and the final sale predictable and scalable. The Programme is being implemented in collaboration with development partners through technical assistance support.
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Chinua Azubike, Chief Executive Officer, InfraCredit said, “We are excited with the successful closing of this transaction and the significance of the project in the housing sector, because of our ability to replicate and scale its impact. Sustainable green housing delivery is the pathway to a balanced built environment, and with the success of this transaction with Modern Shelter, we have a unique opportunity to work with our development partners in demonstrating innovative financing solutions to transition into new buildings, designed to meet energy efficiency standards, create green jobs and support climate resilient economic growth. The Nasarawa Technology Village project underscores a successful example of public–private partnerships as a mechanism of unlocking climate financing for sustainable development”.
Abdulmalik Mahdi, Managing Director, Modern Shelter said, “Modern Shelter is proud to have emerged as a pioneer adopter of EDGE in 2021 (under a previous project Earth-Point Modern Shelter) and this recent transaction marks another significant milestone for Modern Shelter, providing us with access to stable, well-structured, long-term funding essential for delivering EDGE-certified affordable housing. This achievement owes much to the invaluable support of InfraCredit and Shelter Afrique. In collaboration with ABS Blueprint Limited and the Nasarawa State Government, we are wholeheartedly dedicated to alleviating Nigeria’s housing deficit with an unwavering focus on ensuring the project’s quality and timely completion.”
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Emilio Cattaneo, Head of PIDG TA said: “PIDG is proud of its involvement in this project since early 2021, and to have supported InfraCredit and the Housing Solutions Fund through the provision of a grant facility to finance a number of the critical workstreams of this pioneering initiative. The provision of affordable housing, constructed following the highest environmental standards, is fully aligned with PIDG’s mission of promoting the development of critical infrastructure, which is both climate resilient and sustainably constructed, and which addresses the significant funding gap that exists in the sector, by mobilising private capital. We look forward to the future rollout and expansion of this programme.”
Maurice Okoli, Chief Investment Officer, Housing Solution Fund said, “I firmly believe that increasing homeownership accessibility and affordability relies on embracing innovative and collaborative frameworks. Our commitment is unwavering as we strive to eliminate fragmentation within the housing sector while fostering strategic partnerships in a dynamic ecosystem that spans both the demand and supply sides. We look forward to participating in more transactions with InfraCredit and Shelter Afrique”.
Thierno-Habib Hann, M.D., Shelter Afrique said, “In forging this partnership, we are not just expanding the scope of infrastructure to include housing, but also amplifying the impact of inclusive development. By combining the strengths of Shelter Afrique and InfraCredit, we are pioneering an approach that harmonizes housing with traditional infrastructure, thereby addressing crucial needs and transforming communities. This collaboration underpins our commitment to scaling up interventions in Nigeria, mitigating off-take risks, and providing beneficiaries with more accessible, affordable, and longer-tenured financing options, ultimately propelling sustainable development and prosperity.”
Source: Business day
