Beninese bank raises funds for housing

The Beninese bank BSIC Benin has completed a securitization operation on the regional market, raising 15 billion CFA francs (25.4 million USD) from UEMOA investors. The operation, which was fully subscribed, was presented on Monday, October 26, in Cotonou, during the Capital Reach Forum.

Investors from multiple countries participated

The issuance, part of the ZAKA program launched in July, attracted subscribers from Benin, Ivory Coast, Togo, and Senegal. The funds are intended to finance housing costing no more than 150 million CFA francs, with more than half of the financing aimed at first-time homebuyers.

The issuance includes multiple financial segments

The FCTC ZAKA BSIC Benin 2026-2033 issuance consists of four tranches. The senior tranche, the largest, reaches 10 billion CFA francs, with an interest rate of 7 percent. A mezzanine tranche of 3 billion offers a rate of 9 percent, while two junior tranches represent 2 billion.

Securitization helps banks manage funds

Developed by AFINHAB, formerly CRRH-UEMOA, and BOAD Titrisation, the ZAKA program now totals 30 billion CFA francs mobilized in three operations. The BSIC raise constitutes the first social issuance of the program. The bank is using securitization to convert part of its receivables into liquidity.

Urbanization drives housing demand

The potential of the Beninese market is fueled by urbanization: 53 percent of the population lived in cities in 2025, according to the World Bank. The housing deficit is estimated between 300,000 and 400,000 units. According to the Centre for Affordable Housing Finance in Africa (CAHF), it reached approximately 300,000 homes in 2024.

Government adjusts housing access criteria

Faced with these needs, authorities have launched a housing construction program of 20,000 social and economic homes in 14 cities, including 10,849 homes planned in Ouèdo, near Cotonou, while banks seek to develop housing loans. However, at the beginning of October, the government expanded the access criteria for these homes due to difficulties in marketing, indicating that housing needs and household purchasing power do not always align.

Securitization does not automatically lower loan rates

For BSIC, the challenge will therefore be to convert these new resources into accessible loans. Securitization does not, in itself, guarantee a decrease in the rates offered to households.