African Local Currency Bond Fund attracts $45m investment
Cygnum-managed fund receives commitment from FMO.
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The African Local Currency Bond Fund (ALCB Fund), managed by Cygnum Capital, has announced a $45 million investment by FMO, the Dutch development finance institution, with co-participation from FMO Investment Management (FMO IM).
The ALCB Fund was created to promote the development of African corporate bond markets by providing long-term, local currency finance to institutions that deliver broad-based impact. By anchoring bond issuances and mobilising private investors, the fund plays a catalytic role in strengthening Africa’s financial architecture and enabling sustainable development.
Brock Hoback, fund lead at the ALCB Fund, said, “We are delighted to welcome FMO and, for the first time, FMO Investment Management as partners in supporting the growth of the ALCB Fund. This additional $45 million will significantly enhance our capacity to support African corporate bond issuances in local currency, enabling issuers to access long-term financing while mitigating FX risks.”
Angelica Ortiz-de Haas, FMO’s manager for African financial institutions said, “FMO is deeply committed to enlarging the scale and impact of local capital markets in Africa, which play a crucial role in improving macroeconomic resilience and providing a sustainable source of financing to companies that drive broad-based economic growth. Our third investment in the ALCB Fund demonstrates our ongoing belief in the fund’s catalytic role in local currency bond markets. By supporting local currency bond issuance, FMO aims to advance financial inclusion, MSME growth, access to food and renewable energy, and strengthen resilience in least developed countries.”
Nic Wessemius, manager of FMO IM, said, “We are thrilled to make our first fund investment in the ALCB Fund. Through FMO Investment Management, we aim to unlock institutional investor participation in high-impact opportunities originated by FMO in emerging markets. Investing in the ALCB Fund aligns with our philosophy that financial returns and positive development outcomes go hand in hand. We look forward to further mobilising institutional capital alongside FMO to support inclusive and sustainable growth in Africa.”
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