NAIROBI, Kenya, Oct 30 – Shelter Afrique Development Bank (ShafDB) Board has approved a line of credit worth Sh1.8 billion ($12 million) in housing loans to Conakry-based Vista Bank Guinee SA.
Vista Bank Guinee SA will use the line of credit to finance a portion of its customer base, namely real estate developers and construction companies involved in the provision of affordable housing in the Republic of Guinea, including small and medium enterprises (SMEs) in the housing value chain.
The use of the funds will also be extended to individual customers of Vista Bank for housing construction and renovations.
“The agreement marks the initial stride in tackling the housing-deficit in the Republic of Guinea, with Shelter Afrique Development Bank (ShafDB) – enhancing its development influence to its Member States by providing cost-effective housing solutions,” ShafDB Managing Director Thierno Habib Hann said.
Vista Bank Guinee Managing Director, Tirmidjiou Diallo, said approval of the line of credit by Shelter Afrique marks the beginning of a long partnership between the two institutions, adding that the bank had already secured a healthy pipeline of developers for the facility.
“Several projects are taking place, most notably a project that will begin implementing 1000 housing units’, whereby the first 200 units will benefit from this financing,” Diallo said.
Under the loan agreement, the identified developers will have a maximum of 2 years to execute the projects.
Once completed, the developer’s clients (units’ beneficiaries) will be granted a maximum of 8 years to repay the developers.
“We believe the 10-year tenure will allow developers to offer attractive payment conditions to their clients and enhance affordability,” Hann added.
The loan is guaranteed by Vista Group Holdings SA, a Vista Bank Guinee parent company headquartered in Burkina Faso with offices in The Gambia, Sierra Leone, Guinee, and Burkina Faso.