West Africa: Prosper Africa and partners in $274m affordable housing deal
The US Government’s Prosper Africa initiative has declared the successful conclusion of a $274 million financing deal to support the rapidly expanding housing sector in West Africa.
Bank of America Securities, Brean Capital, The Bank of New York Mellon, Togo’s Caisse Régionale de Refinancement Hypothécaire (CRRH), the US Agency for International Development (USAID), and the US International Development Finance Corporation (DFC) collaborated in the partnership, enabling US investment in Africa’s emerging markets and increasing opportunities for West Africans to gain access to homeownership. MiDA Advisors served as the originator and lead transaction advisor on the deal.
The transaction signifies an innovative approach to mobilising transparent, market-oriented financing at scale and is projected to facilitate about 6,000 households to gain access to homeownership. As part of Prosper Africa’s whole-of-government strategy, USAID funded MiDA Advisors and CrossBoundary to deliver advisory services that prepared CRRH for a global bond issuance, while DFC provided a credit guarantee, enabling investors to access an untapped market opportunity while maintaining their risk profiles.
CRRH was able to access cheaper, longer-term capital for the first time through this deal. The agreement involved a 17-year $217 million equivalent Eurobond, which was issued via a US trust along with a local currency bond equivalent to $57 million, for a total raise of $274 million from international and local institutional investors.
Cameron Khosrowshahi, senior investment advisor with Prosper Africa, stated, ”Prosper Africa’s partnership with leading US and African financial institutions signals increased US investor interest in investing in African markets to meet the enormous demand for affordable housing in West Africa. Our collaboration is a blended finance transaction that will catalyse investment at scale and create generational wealth through homeownership for thousands of people across West Africa.”
Jim Polan, DFC vice president for the office of development credit, said, ”DFC partners with the private sector to make impactful investments around the world, including in West Africa where affordable housing is a critical need. The agency is pleased to work with such a diverse group of investors, including colleagues from the US Government, on this important issue that will help provide affordable housing and bolster stability for thousands in the region.”