DEG backs African Local Currency Bond Fund
DEG has disclosed an investment of up to €25 million in the African Local Currency Bond Fund, managed by Cygnum Capital.
German development finance institution DEG has disclosed a signed investment of up to €25 million in the African Local Currency Bond Fund (ALCBF), an open ended, structured debt fund established in 2012 by KfW acting as anchor investor on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ).
Its mission is to support the development of African capital markets by promoting the issuance of corporate bonds.
The fund focuses on tier II financial institutions in Africa and finances mostly MSME and housing portfolios. It is domiciled in Luxembourg and managed by Cygnum Capital, an experienced asset manager based in the United Kingdom.
The fund plans to issue a medium-term-note series of up to €150 million in Frankfurt in 2024/2025. The notes will have a sustainable use of proceeds (micro/SME/housing or green on-lending purposes).
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