African Local Currency Bond Fund secures first private institutional investor
The African Local Currency Bond Fund, managed by Cygnum Capital, has raised $30 million.
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The African Local Currency Bond Fund (ALCB Fund), managed by Cygnum Capital, has raised $30 million through the issuance of a 10-year bond under its Euro Medium Term Note (EMTN) programme. The bond was fully subscribed by a UK-based insurance company, the fund’s first private institutional investor.
Executed in collaboration with HSBC as dealer, the transaction will support the fund’s mission to deepen African capital markets by investing in high-impact local currency corporate bonds across the continent.
The ALCB Fund’s EMTN programme was first launched in 2024 with its inaugural €25 million bond issuance financed by the German development finance institution DEG. This latest issuance marks a further evolution of the programme, with the notes listed on The International Stock Exchange (TISE) and rated Baa1 by Moody’s Investors Service.
“This milestone transaction marks a significant step forward in the ALCB Fund’s strategy to mobilise private capital in support of the Sustainable Development Goals (SDGs),” said Brock Hoback, fund lead at the ALCB Fund. “Since inception, we have attracted domestic private investment into SDG-aligned businesses by requiring local co-investment alongside every bond we support. With this transaction, we are now also aiming to mobilise international private capital directly through the fund itself, leveraging our robust capital structure underpinned by development finance institutions including KfW and FSD Africa Investments.”
“We are delighted to have supported the ALCB Fund in broadening its investor base and attracting institutional capital to support African markets,” said Robert Anson, vice president, debt syndicate at HSBC. "This transaction showcases how international bond markets can mobilise the private investment community for good and is expected to be a springboard from which other investors will participate."
Since its inception, the ALCB Fund has deployed over $420 million to 67 companies within the financial inclusion, renewable energy, affordable housing, and other critical sectors across Africa.
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