Quick Summary:
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ALCB Fund secured $30 million from a UK institutional investor via a 10-year bond issuance.
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This is the fund’s first private investment under its EMTN programme, in partnership with HSBC.
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Funds will support SDG-aligned sectors like clean energy, financial inclusion, and housing.
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The bond, rated Baa1 by Moody’s, builds on ALCB’s $420M impact across 67 African companies.
The African Local Currency Bond Fund (ALCB Fund), managed by Cygnum Capital, has successfully raised $30 million through a 10-year bond issuance under its Euro Medium Term Note (EMTN) programme. This marks the fund’s first-ever investment from a private institutional investor—a UK-based insurance company—signaling a new wave of global trust in Africa’s local currency debt market.
Strategic Collaboration with HSBC
The bond issuance was executed in partnership with HSBC, which acted as the dealer. This transaction aligns with the ALCB Fund’s mission to deepen African capital markets by investing in high-impact, local currency-denominated corporate bonds. Proceeds will be directed toward businesses supporting the Sustainable Development Goals (SDGs), especially in financial inclusion, renewable energy, and affordable housing.
Strengthening the Fund’s Credit Profile
This new issuance follows the fund’s initial €25 million bond launched in 2024, which was backed by Germany’s DEG. The newly issued notes are listed on The International Stock Exchange (TISE) and carry a Baa1 credit rating from Moody’s, reflecting the fund’s strong creditworthiness and governance.
A New Era of Private Capital Mobilization
Brock Hoback, Fund Lead at ALCB Fund, emphasized that this milestone is a strategic pivot toward mobilizing international private capital through the fund itself. With foundational support from development finance institutions such as KfW and FSD Africa Investments, the fund is now positioned to scale its impact even further.
“This transaction marks a significant step forward in our strategy to mobilise private capital in support of the SDGs,” Hoback stated.
International Markets as a Force for Good
Robert Anson, Vice President of Debt Syndicate at HSBC, noted the significance of the deal in showcasing how international bond markets can serve as engines for sustainable development.
“This is expected to be a springboard for broader institutional participation in Africa’s financial markets,” Anson said.
Proven Track Record of Impact
Since inception, the ALCB Fund has deployed over $420 million to 67 companies across Africa. This latest bond issuance not only expands the fund’s capital pool but reinforces its leadership in building resilient, inclusive, and sustainable financial ecosystems across the continent.