Cabo Verde state company issues bonds to finance itself

16 October 2015

Cape Verdean public company Imobiliária, Fundiária e Habitat (IFH) plans to carry out a bond issue worth 850 million escudos (US$8.8 million), following an authorisation granted by the government through the Directorate General for the Treasury.

Justifying the operation, the government said that it intends to facilitate access to adequate housing for the most disadvantaged people, “one of the fundamental pillars of the economic transformation agenda for the country,” according to weekly newspaper A Semana.

This is the second time that the Treasury has approved IFH raising funds through the securities exchange, to build housing for disadvantaged people.

The first operation took place in December 2013, when the government authorised the issuance of debenture bonds worth 1 billion escudos (US$10.3 million).

To combat the housing deficit, especially of the most disadvantaged population groups, Cabo Verde launched the “Housing for All” programme and launched it by signing a credit line with Portugal, worth 220 million euros, with the government providing 10 percent of the funding.

With about 1,460 buildings built (economic, controlled cost and social housing), 1,450 houses refurbished and the state asset management of about 390 buildings, the IFH has taken actively taken on its responsibility of promoting and structuring urban areas in Cabo Verde. (macauhub/CV)