ALCB Fund

We are pleased to announce the launch of ALCB Fund's new and improved website! www.alcbfund.com Click through to learn more about the Fund's mandate, target transactions, and approach to deepening financial markets in Africa.

The ALCB Fund, in collaboration with the IFC - International Finance Corporation, has invested in the debut XOF 20 billion (USD 32 million) Sustainability Bond issuance of Baobab Sénégal. Bond proceeds will be applied to provide loans to over 5,000 micro, small and medium enterprises (MSMEs) in #Senegal, including women-owned/led businesses. This transaction represents the first thematic bond in #Senegal and the first sustainable bond in the West African Economic and Monetary Union (WAEMU) issued by the private sector. The transaction was the outcome of a collaboration between the ALCB Fund, IFC, and USAID's Entrepreneuriat & Investissement programme. The ALCB Fund provided financing on behalf of both the Fund and IFC, with IFC in turn providing a credit guarantee equal to 45% of the Fund’s investment. The ALCB Fund is managed by Cygnum Capital — ALCB Fund, en collaboration avec IFC - International Finance Corporation, a investi dans la première émission obligataire durable de @Baobab Senegal. Cette émission permet à Baobab Senegal de lever 20 milliards de FCFA (32 millions de dollars) qui serviront notamment à accorder des prêts à des taux abordables à plus de 5000 micro-entrepreneurs et TPE au Sénégal, y compris des entreprises appartenant à des femmes et/ou dirigées par des femmes. Cette transaction représente la première obligation thématique au #Sénégal et la première obligation durable dans l'Union Economique et Monétaire Ouest-Africaine (UEMOA) émise par un acteur du secteur privé. La transaction est le résultat d'une collaboration entre le ALCB Fund, IFC et le programme Entrepreneuriat & Investissement de l'agence américaine pour le développement international (USAID E&I). Le ALCB Fund a investi un montant global de 10,5 milliards de FCFA dont 45% est couvert par une garantie de crédit de IFC. Le ALCB Fund est géré par Cygnum Capital. #africanbusiness #sustainabledevelopment #capitalmarkets #sustainability #thematicbonds #genderinvestment #inclusivegrowth #sdgs #waemu Read more here: https://lnkd.in/eNhHhWsD

The ALCB Fund has successfully completed a USD 20 million loan facility with FMO - Dutch entrepreneurial development bank. This is the second investment of FMO following an initial investment of USD 10 million in 2017. 50% of proceeds have been earmarked for local currency investments to be deployed across the Least Developed Countries (#LDCs). Brock Hoback, Fund Lead of the ALCB Fund, said: “since inception, the ALCB Fund has invested over USD 370 million across 18 African countries, with a co-investment multiple of 9.5x. This has only been possible through the continued support of our development partners, including FMO. The ALCB Fund is managed by Cygnum Capital. Read more here: https://lnkd.in/e4kzk_Uh

The ALCB Fund has concluded a TZS 27.2 billion (USD 10 million) investment in a senior unsecured bond issued by NBC Tanzania. The proceeds of the bond will facilitate loans to #MSMEs in #Tanzania and enable NBC to further expand its financial services to businesses and individuals throughout the country. The Fund’s investment in NBC continues its track record of supporting African financial institutions through the development of local currency bond markets, helping to promote long-term financial resilience in African economies. The investment was hedged in collaboration with TCX, through its EU Market Creation Pricing Facility. Read more here: https://lnkd.in/eCpSwZKr

FSD Africa #AFSIC2024: Financing the Frontier: Mobilising private capital across the financing continuum; moderated by Mary M. Njuguna, our Principal Specialist, #CapitalMarkets. This session showcased innovative solutions aimed at driving private capital into underfunded sectors of the real economy, often referred to as ‘the frontiers.’ Our distinguished panellists Wairimu Karanja, Partner and Chief Legal Officer - Persistent Energy Capital LLC, 'Tokunboh Ishmael, CFA, Managing Partner – Alitheia Capital, Chinua Azubike, Chief Executive Officer – InfraCredit and Olamipo Ogunsanya, Executive Director - Cygnum Capital, emphasised the importance of directing long-term financing toward #SustainableDevelopment, particularly in critical areas like #Climate, infrastructure, and #MSME growth, where there is a notable shortage of long-term capital. They also offered practical examples of how #Innovation in financial structuring and models can, on the one hand, meet huge financing gaps while at the same time addressing domestic and international institutional investors’ investment needs and the need for a creative approach to designing financial products that meet green and sustainable objectives, #FinancialInclusion, #JobCreation, #ClimateAction, #WomenEmpowerment and the energy transition in #Africa.  -- #MakingFinanceWork, AFSIC - Investing in Africa

One of our team members, Fola Pedro, FCCA was invited by Invest Salone to join a panel discussion at the #SierraLeone Investment Summit at AFSIC - Investing in Africa to discuss the ALCB Fund’s investment in the LAPO Sierra Leone bond. The session offered valuable insights into investing in Sierra Leone and how partnerships with local actors, international investors and development partners are driving and supporting economic growth in Sierra Leone. It was a fantastic opportunity to reflect on the lessons learned and the impact these investments can have on underserved communities. #afsic #africanbusiness #developmentfinance #inclusivegrowth #sustainabledevelopment #africaninvestment #capitalmarkets

The ALCB Fund has invested ZAR 181 million (USD 10 million) in the senior and mezzanine notes of Urban Ubomi 2, a mortgage-backed securities (MBS) programme sponsored by the Trust for Urban Housing Finance’s (TUHF) Social Securitisation Programme. Through Urban Ubomi 2, TUHF will finance property entrepreneurs dedicated to revitalising inner-city buildings and addressing the growing demand for affordable rental properties across South Africa's inner-city and in-city areas. The initiative is a key part of supporting sustainable urban regeneration and fostering economic development through property entrepreneurship. The ALCB Fund is managed by Cygnum Capital Read more here: https://lnkd.in/eGimFj5D #sustainabledevelopment #africanbusiness #urbanregeneration #affordablehousing #realestate #economicdevelopment #sdgs #southafrica

The ALCB Fund has invested XOF 6 billion (USD 10 million) in the second securitisation of West African Development Bank (BOAD), the first multi-tranche securitisation in the #WAEMU region. The XOF 160 billion (USD 270 million) securitisation is composed of three tranches. The mezzanine tranche of XOF 28.75 billion (USD 50 million), rated AA+ by GCR West Africa, was offered to institutional investors, including the ALCB Fund, while the other classes were fully subscribed by BOAD. This is the first time in the WAEMU region where a multi-tranched securitisation has been issued, and the first by an African-DFI with the intent of providing capital relief to facilitate portfolio growth. The issuance will support BOAD’s capacity to provide funding to developmental sectors such as infrastructure, agriculture, health and education. The ALCB Fund played an active role in the structuring of the operation, playing an anchor investor role, with their investment earmarked to private sector projects in the WAEMU region. BOAD Titrisation acted as arranger and fund manager. Impaxis Securities acted as lead bookrunner. ALCB Fund is managed by Cygnum Capital. Read more here: https://lnkd.in/eq2V7VRd #africanbusiness #sustainabledevelopment #capitalmarkets #inclusivegrowth #waemu #privatesector #dfi #sdgs

The ALCB Fund has invested ZAR 40 million (USD 2.2 million) in the 4-year senior unsecured social bond issued by UsPlus Limited, a #fintech enabled business providing working capital solutions to #SMEs in South Africa.  Proceeds will be deployed to support Black-owned MSMEs, women-owned MSMEs, youth-owned MSMEs, and MSMEs located in priority provinces. This investment in UsPlus is the ALCB Fund’s fourth outstanding investment in South Africa, bringing the Fund’s cumulative exposure to the country to USD 14.3 million. The ALCB Fund is managed by Cygnum Capital. https://lnkd.in/eNt8Bs9f #africanbusiness #capitalmarkets #sustainabledevelopment #SMEs #SDGs #inclusivegrowth #developmentfinance

The ALCB Fund has invested USD 5 million in the historic first Green, Social and Sustainable (GSS) bond issued by the ECOWAS Bank for Investment and Development (EBID). As a regional DFI, EBID’s mandate is to promote economic integration and development in the ECOWAS region by supporting private and public sector projects. The issuance will support the achievement of #SDGs by channelling funds to projects in sectors such as agriculture, infrastructure, industry, renewable energy and SME lending. Local institutional investors such as pension funds, insurance companies and asset managers also participated in the issuance for a total amount raised of USD 400 million. This is the first thematic issuance by EBID and a regional DFI in the region. The ALCB Fund is managed by Cygnum Capital Read more here: https://lnkd.in/epvQ7-GF #SDGs #sustainabledevelopment #inclusivegrowth #bondissuance #capitalmarkets #africanbusiness #developmentfinance