45022 - TUHF MAGC

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Summary of Investment Information

Project Number

45022

Company Name

TRUST FOR URBAN HOUSING FINANCE

Date SPI Disclosed

Feb 12, 2024

Country

South Africa

Region

Africa

Projected Board Date

Jun 28, 2024

Environmental Category

FI-2 - Limited

Status

Active

Last Updated Date

Feb 23, 2026

Department

Regional Industry - FIG Africa

Industry

Financial Markets

Previous Events

Approved : Dec 10, 2024
Signed : Sep 12, 2025
Invested : Feb 19, 2026

Sector

Primary Mortgage Institutions

Additional Project Attributes

Blended Finance

Project Description

The proposed project consists of an IFC investment of up to ZAR 960 million with a 7-year tenor in the senior tranche of a ZAR 1.2 billion special purpose vehicle (SPV), to be setup and sponsored by TUHF Holdings Limited, South Africa (TUHF or the Company). TUHF and a third-party investor will each invest ZAR 120 million in the junior and mezzanine tranches, respectively. The SPV will utilize the proceeds to finance the development of affordable EDGE-certified green residential buildings in South Africa. The Project is expected to be supported by the Market Accelerator for Green Construction (MAGC) Program as described in the Blended Finance Section.

Associated Advisory Engagement

IFC will also support TUHF with advisory services to improve its capacity to originate and manage loans for the development of certified green buildings. The full scope of the advisory services will be confirmed after consultations with the Company.

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	53.21
Equity

IFC's loan to the financial institution described in this SII is targeted for on-lending to the following sector(s):

Product Type	Use of Proceeds
Straight Senior Loan	Housing Loans to Developers

IFC's Definitions of Targeted Sectors can be found here.

Development Impact

Stakeholder effects: Increased access to climate finance (green building developers). The proposed Project will support access to climate finance, leveraging TUHF’s market position in inner cities of South Africa. The climate finance portfolio is expected to be accompanied by GHG emission reductions. Stakeholder Effects: Increased access to housing finance. The Project will support access to affordable housing finance. South Africa is rapidly urbanizing, and an estimated 26 percent of the urban population lives in informal housing areas. The Project will increase the supply of housing finance for the affordable housing segment in South Africa. Contribution to Market Creation: Sustainability. IFC anticipates that its systematic engagement at both the sectoral and financial institutions levels, through investments, upstream, and advisory services, will help scale-up climate finance, strengthen green finance standards in the country, and encourage replication by other institutions in South Africa; thus, contributing towards increased environmental sustainability through the demonstration and capacity building channels.

Financing Structuring (tenor, local currency): By providing TUHF with long term (7-year) ZAR funding – a resource that has declined in South Africa, particularly for Non-Banking Financial Institutions like TUHF – IFC will enable TUHF to increase access to green building finance. This will facilitate commercial developers to purchase, develop and refurbish multi-family rental properties in South Africa’s urban areas. The longer tenured facility will strengthen TUHF’s financial sustainability by augmenting its funding base, adding longer tenor liabilities, and improving its maturity mismatch. Non-Financial Additionality Knowledge, Innovation & Capacity Building: IFC plans to provide technical support and in-depth training to relevant TUHF staff and stakeholders, deepening the Company's capacity to originate and manage loans targeted at certified-green buildings.

E&S Category Rationale / Risks and Mitigation

Environment & Social Categorization Rationale The Project has been categorized as FI-2. The SPV will utilize the proceeds to finance entrepreneurs that develop EDGE-certified green affordable rental housing units in South Africa’s inner cities and townships. TUHF’s core business is focused on providing developers with construction loans to finance the retrofit of abandoned and dilapidated inner-city buildings in South Africa for rent to low-income tenants. The main E&S risks and impacts of the project derive from the E&S risks associated with the Company's investment activities and its E&S capacity and system in place to manage these risks. These risks typically include occupational health and safety issues, supply chain and labor and working conditions issues, and community impacts, among others. The Company will not invest in any coal-related activities, or higher risk business activities that may include: a) involuntary resettlement, b) risk of adverse impacts on indigenous peoples, c) significant risks to or impacts on the environment, community health and safety, biodiversity, cultural heritage or d) significant occupational health and safety risks. As part of this Project, the Company will be required to screen and assess its transactions against the IFC Exclusion List, national E&S laws and IFC’s Performance Standards. Main Environmental and Social Risks and Impacts TUHF has a designated E&S Officer responsible for the implementation of the ESMS. The ESMS is currently under development and not in place. The Company will be required to develop an Environmental and Social Management System which should cover: an E&S Policy; E&S due diligence procedure which includes screening against the IFC Exclusion List, higher risk activities screening, applicable National E&S Laws; roles and responsibilities of staff responsible for implementing ESMS; ESMS implementation tools (e.g., E&S checklists); monitoring procedure; E&S covenants in legal agreements with clients The Company will be required to: (i) develop and implement its Environmental and Social Management System;(ii) provide ESDD samples (iii) provide staff training; (iv) develop external communication mechanism and (v) submit a periodic report to IFC.

IFC will periodically disclose the names, locations and sectors for Category A sub-projects that have been supported by IFC investments through financial intermediaries, subject to regulatory constraints and market sensitivities. The sub-project(s) listed below reflect(s) the status of the portfolio as of July 1, 2020.

IFC will periodically disclose the names, locations and sectors for qualifying sub-projects that have been supported by this IFC investment through financial intermediaries, subject to regulatory constraints and market sensitivities. Any qualifying sub-project(s) will be disclosed during the annual reporting cycle established with the client.

TUHF has a designated E&S Officer responsible for the implementation of the ESMS. The (ESMS) is currently under development and not in place. The Company will be required to develop an Environmental and Social Management System which should cover: an E&S Policy; E&S due diligence procedure which includes screening against the IFC Exclusion List, higher risk activities screening, applicable National E&S Laws; roles and responsibilities of staff responsible for implementing ESMS; ESMS implementation tools (e.g., E&S checklists); monitoring procedure; E&S covenants in legal agreements with clients The Company will be required to: (i) develop and implement its Environmental and Social Management System;(ii) provide ESDD samples (iii) provide staff training; (iv) develop external communication mechanism and (v) submit a periodic report to IFC.

Title	Anticipated Completion Date
Submit implementation report	12/31/2024
Staff Training plan	12/31/2024
Staff training	12/31/2024
External Communication Mechanism	09/27/2024
ESMS Development	09/27/2024

Contacts

For Inquiries About the Project, Contact

TUHF Holdings Limited, South Africa
Ilona Roodt
Chief Financial Officer
+27 10 595 9000
ilonar@tuhf.co.za
12th Floor, West Wing, Libridge Building, 25 Ameshoff Street, Braamfontein, 2001
info@tuhf.co.za

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This Summary of Investment Information (SII) is prepared by IFC to disclose a factual summary of the main elements of the potential investment. It also includes findings and recommendations related to environmental and social considerations regarding this potential investment. The purpose of the SII is to enhance the transparency of IFC’s activities. For any project documentation or data included or attached herein, whether prepared by the project sponsor or otherwise, authorization has been given for public release by the project sponsor. IFC considers that this SII is of adequate quality for release to the public, but has not necessarily independently verified all of the project information therein. It is distributed in advance of IFC Board of Directors’ consideration and may be periodically updated thereafter. Board dates are estimates only and this document should not be construed as presuming the outcome of the Board Directors’ decision. The following SII is disclosed in accordance with IFC's Access to Information Policy (AIP) that went into effect on January 1, 2012.

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