Nedbank Affordable Housing Development Division

(NAHDD)


Client: Nedbank
Sector: Housing
Services: Programme Support
Date: August 2007 - current

Context

January 2004 The Financial Sector Charter is established to stimulate housing delivery in the affordable housing market through joint public-private interventions.

The Banking Sector commits itself to providing tangible support towards transformation and within this framework, the French Development Bank (AFD) invests credit in a number of South African banks.

2006 and Nedcor establishes the Nedbank Affordable Development Division, known as NAHDD, a new unit within Commercial Property Finance, with the mandate to invest in development projects in the affordable housing market.

With limited experience in this high-risk market, Nedcor contracts Shisaka to advise and support them in establishing and implementing the programme, and particularly to mitigate their lending and reputational risk.


Shisaka's Role

Shisaka provides strategic support to Nedbank to develop “an appetite” for risk and to advise them on how to do business differently. They do this by:

  • Providing technical support on project feasibility assessments of potential developers
  • Participating in the credit authorisation process
  • Structuring projects and loan agreements in such a way as to mitigate risk for NAHDD
  • Providing operational support by overseeing the project, risk-management and monitoring compliance by developers of the terms of the loan agreements
  • Transferring skills to Nedcor staff to ensure the capacity to manage the programme in the long term

Achievements as at June 2010

  • Shisaka has facilitated 22 deals
  • The total value of development loans issued to Affordable Housing Developments is in excess of R 905 million
  • The total number of Financial Service Charter units funded is 11 987
Telephone: + 27 11 447 6388

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