Shelter Afrique Development Bank (ShafDB) has extend a line of credit to the tune of Ksh 1.8 billon ($12m) to Vista Bank Guinee SA to support housing development in the Republic of Guinea.
The Conakry-based Vista Bank Guinee SA will use the new funds to finance 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 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,” said Thierno Habib Mr.Hann, ShafDB Managing Director.
ShafDB says part of the facility will also be extended to individual customers of Vista Bank for housing construction and renovations.
“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,” added Tirmidjiou Diallo, Vista Bank Guinee Managing Director.
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,” added Hann.