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The African Local Currency Bond Fund (ALCB Fund), managed by Cygnum Capital, has invested a further R50 million (about $3 million) in a four-year senior unsecured social bond issued by UsPlus, a fintech-enabled provider of working-capital solutions to SMEs in South Africa. The notes have been issued under UsPlus’ R1 billion (about $61 million) note programme and listed on the Sustainability segment of the Interest Rate Market of the JSE Limited.
The transaction marks the ALCB Fund’s second investment in UsPlus, building on its initial R40 million (about $2.2 million) commitment in 2024 that helped bring UsPlus to the public bond market as a debut thematic issuer.
UsPlus deploys liquidity through invoice discounting, factoring, and purchase order financing to help small enterprises to unlock capital trapped in payment cycles.
“We are pleased to reinvest in UsPlus following its successful inaugural social-bond issuance in 2024,” said Brock Hoback, fund lead at the ALCB Fund. “This follow-on transaction shows how anchor investment can help build a durable local-currency funding platform, enabling UsPlus to broaden working-capital access for MSMEs while supporting employment, inclusion and South Africa’s thematic bond market.”
Leonidas Kirkinis, founder and CEO of UsPlus, said: “Deploying finance to create change for the better in our society cannot be achieved by any single actor alone. Since its inception, UsPlus has sought to create networks of good that can positively impact South Africa. The significant increase in support from the ALCB Fund is a strong endorsement of UsPlus’ social-finance strategy and sustainable success as well as our ability to use the debt capital markets to expand finance to MSMEs. This issuance will enable us to extend working-capital support to more businesses across South Africa, helping our beneficiaries manage cash-flow constraints, fulfil contracts and sustain as well as grow employment. It also reinforces the role that social bonds can play in linking institutional capital with meaningful economic inclusion. Accordingly, we are proud of the ALCB Fund’s partnership with UsPlus.”
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