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The African Local Currency Bond Fund (ALCB Fund), managed by Cygnum Capital, has invested XOF 4 billion ($7 million) in the XOF 30 billion ($52.2 million) debut green bond issued by Swami Agri, one of Senegal’s largest agricultural producers.
The transaction marks Swami Agri’s inaugural capital markets issuance and the first agricultural green bond issued in the West African Economic and Monetary Union (UEMOA). Proceeds are directed towards solar panels and cold-storage units.
The five-year, XOF-denominated bond benefits from a first-demand guarantee issued by the African Guarantee and Economic Cooperation Fund.
The investment programme targets a 70–90% renewable energy share across storage and production operations, a 20–30% reduction in CO₂ emissions, a reduction of at least 50% in post-harvest losses, and the creation of at least 700 direct jobs. It also supports Senegal’s path towards self-sufficiency in potatoes and onions.
Fola Pedro, transaction lead for the ALCB Fund at Cygnum Capital, said: “For the ALCB Fund, the strength of this transaction lies in the combination of a first-time corporate issuer, a clear use of proceeds, and the first agricultural green bond in the UEMOA market. The bond will add 62,500 tonnes of solar-powered cold-storage capacity and 16.7 MW of solar generation, helping reduce post-harvest losses and giving the agricultural value chain more capacity to store and market produce. It is an important milestone for Swami Agri and a strong example of what can be financed through the regional bond market. We are pleased to have supported the transaction.”
Hitesh Gorasia, chief executive officer and managing director of Swami Agri, commented: “This issuance allows Swami Agri to finance its next phase of growth with longer-term local currency funding. The new solar plants and increased cold-storage capacity will reduce our emissions and our post-harvest losses, and take Senegal closer to self-sufficiency in potatoes and onions. We are proud to be the first agricultural issuer to bring a green bond to the regional market, and grateful to the ALCB Fund for supporting the transaction.”
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