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Shelter Afrique approves an additional $13 million line of credit for Mixta Africa

Pan-African housing development financier Shelter Afrique has approved a $13 million line of credit to Lagos-based real estate company, Mixta Real Estate PLC.

The 5-year facility with a 24-month moratorium has been structured to finance the group’s ongoing real estate projects in Côte d’Ivoire, Senegal and Morocco.

According to a press release, the $13 million loan will co-finance the construction of 356 homes in Côte d’Ivoire, 162 homes in Senegal and 371 homes in Morocco, with sale prices ranging from $26,000 in Morocco, $45,000 in Côte d’Ivoire, and between $36,000 and $52,000 in Senegal.

The Executive Director and Chief Financial Officer of Mixta Africa, Benson Ajayi, commended Shelter Afrique for expanding financing options for the real estate sector, adding that the strategy deployed by Shelter Afrique to raise funds for housing projects from regional bonds in local currency was commendable.

“We were looking for such a strategy from DFIs who claim to support us. That Shelter Afrique was able to do this is really important to us and that’s what makes this transaction important and successful.

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“If Shelter Afrique had come to us with a proposal in dollars, we would have said no, because our transaction in dollars had its own share of forex challenges.

“We are however confident that the dollar-denominated facility granted to us by Shelter Afrique to fund projects in Morocco, Senegal and Cote d’Ivoire will not suffer much currency shocks,” Ajayi said.

For his part, Acting Managing Director of Shelter Afrique, Kingsley Muwowo, hailed the strong and long-term relationship between the two institutions.

“At Mixta Africa, Shelter Afrique has a reliable partner who shares a common goal of developing affordable housing across Africa.

“So we have structured Naira and Dollar denominated credit facilities to support their real estate projects. The Naira loans, which are backed by the first round of N500 billion bonds, which raised N46 billion, will support Mixta Africa’s projects in Nigeria to hedge against currency risks.

“The dollar note, which comes from our own capital resources, will support Mixta’s projects in Morocco, Senegal and Ivory Coast,” Muwowo said.

Over $50 million disbursed

Muwowo revealed that of the $110 million (N46 billion) made since the naira-denominated bonds began in April, more than $50 million had already been disbursed to fund projects in Nigeria.

“Two months ago, we approved a loan of $19.5 million (8 billion naira) to Mixta Africa to support its affordable housing projects in Nigeria.

“Last week, we also approved a commercial loan of $24.03 million (10 billion naira) to Landmark Africa to part-finance the construction of a mixed-use housing project, Landmark Waterview Apartments, and also help the company refinance its existing debt. We expect a healthy project pipeline in Nigeria as demand continues to grow,” Muwowo said.