ALCB Fund reinvests an in Bayport Mozambique

The African Local Currency Bond (ALCB) Fund – managed by Lion’s Head Global Partners – has re-invested MZN 200 million ($3.1 million) in Bayport Financial Services Mozambique. The bond issuance is for a tenor of three years with a coupon rate of 22%. This is a follow-on to the fund’s previous investments of MZN 180 million (c. $2.8 million) and MZN 130 million (c. $2 million) in the company in 2018 and 2019, respectively. This transaction, which closed on 5 May 2023, will allow Bayport Mozambique to continue to provide tailored financial solutions to an inclusive customer base.

Bayport Mozambique is a subsidiary of Bayport Group and offers deduction-at-source credit facilities to formal employees in Mozambique. The company targets underserved communities in Mozambique, providing a wide range of financial services, including microfinance loans, savings products, and insurance.

Brock Hoback, fund lead to the ALCB Fund noted, “The ALCB Fund is pleased to announce this additional investment in Bayport Mozambique. This investment demonstrates our commitment to supporting the growth and development of the financial services industry in Mozambique and our support for Bayport as it continues to expand its financial services to underserved communities in the country.”

Bene Machatine, CEO of Bayport Financial Services Mozambique stated, “We are excited to have partnered with the ALCB Fund and to have received the additional investment. This investment is instrumental as it will enable us to continue our mission of providing access to affordable financial services to underserved communities in Mozambique. We look forward to a continued partnership with the fund and hope to continue to positively impact the communities we serve in Mozambique in the coming years.”