The African Local Currency Bond Fund (ALCB Fund), managed by Cygnum Capital, has successfully raised $30 million through the issuance of a 10-year bond under its Euro Medium Term Note (EMTN) programme. This milestone transaction marks the fund’s first investment from a private institutional investor—a UK-based insurance company—signaling growing international confidence in Africa’s local currency debt markets.
Executed in partnership with HSBC, which acted as the dealer, the bond issuance is a strategic step forward in the ALCB Fund’s mission to deepen African capital markets by investing in high-impact, local currency-denominated corporate bonds across the continent. The proceeds will be deployed to support businesses aligned with the Sustainable Development Goals (SDGs), particularly in sectors such as financial inclusion, renewable energy, and affordable housing.
This latest issuance builds on the momentum of the fund’s EMTN programme, which was launched in 2024 with an inaugural €25 million bond backed by the German development finance institution DEG. The new notes are listed on The International Stock Exchange (TISE) and carry a Baa1 rating from Moody’s Investors Service, reflecting the fund’s strong credit profile and robust governance framework.
“This milestone transaction marks a significant step forward in the ALCB Fund’s strategy to mobilise private capital in support of the Sustainable Development Goals,” said Brock Hoback, Fund Lead at the ALCB Fund. “Since inception, we have attracted domestic private investment into SDG-aligned businesses by requiring local co-investment alongside every bond we support. With this transaction, we are now also aiming to mobilize international private capital directly through the fund itself, leveraging our robust capital structure underpinned by development finance institutions including KfW and FSD Africa Investments.”
The transaction also highlights the growing role of international capital markets in financing sustainable development in Africa. By tapping into global institutional capital, the ALCB Fund is setting a precedent for how blended finance structures can be used to scale impact.
Robert Anson, Vice President of Debt Syndicate at HSBC, commented:
We are delighted to have supported the ALCB Fund in broadening its investor base and attracting institutional capital to support African markets. This transaction showcases how international bond markets can mobilize the private investment community for good and is expected to be a springboard from which other investors will participate.
Since its establishment, the ALCB Fund has deployed over $420 million to 67 companies across Africa, catalyzing growth in sectors critical to the continent’s development. With this latest bond issuance, the fund is not only expanding its capital base but also reinforcing its role as a key player in building resilient, inclusive, and sustainable financial ecosystems across Africa.
