London, 24 July 2026: The African Local Currency Bond Fund (ALCB Fund) has completed a USD 25 million, seven-year bond issuance, fully subscribed by international asset manager M&G Investments, marking another step in attracting global institutional capital to African local currency markets. The transaction is the fourth bond issued under the Fund's Euro Medium Term Note (EMTN) Programme and represents a significant milestone in broadening the Fund's institutional investor base, further advancing its objective of mobilising private capital to finance SDG-aligned investments across Africa.
Executed in collaboration with SFI Markets B.V. as dealer and Herbert Smith Freehills Kramer as legal advisor, the transaction comprises senior unsecured notes with a seven-year tenor and are rated Baa1 by Moody's. The transaction will support the Fund's continued growth while advancing its mission to deepen African capital markets through investments in high-impact local currency corporate bonds.
"We are delighted to welcome M&G Investments to the ALCB Fund," said Brock Hoback, Fund Lead at the ALCB Fund. "This investment reflects the growing confidence that institutional investors have in the Fund's investment strategy, governance and development impact. Through our bond investments, the Fund has already mobilised almost eight dollars of local private capital alongside every dollar invested. By attracting institutional investors into the senior debt of the Fund, we are creating a second layer of mobilisation that enables development finance capital to catalyse substantially greater volumes of private investment into African businesses and infrastructure."
"We are pleased to support the ALCB Fund. The Fund offers a distinctive, professionally managed route to support the development of African local currency bond markets. Its increasingly diversified portfolio, robust capital structure, disciplined risk management framework and clear development mandate align well with our long-term investment approach. We are particularly attracted to ALCB's role in mobilising financing for businesses and sectors that contribute to inclusive and sustainable growth across Africa," said Maria Redondo, Director at M&G Investments.
Since inception, the ALCB Fund o deepen African capital markets has deployed more than USD 470 million across 109 investments, supporting businesses operating in sectors including financial inclusion, renewable energy, affordable housing and other SDG-aligned industries throughout Africa. At the portfolio level, the Fund has achieved a private capital mobilisation ratio of 7.8x, demonstrating its ability to crowd in significant private investment alongside its own commitments. With capital now provided by both development finance institutions and commercial institutional investors, the Fund aims to continue catalysing investment into African local currency capital markets, supporting inclusive and sustainable economic growth across the continent.
The ALCB Fund is managed by Cygnum Capital, an independent investment manager specialising in emerging and frontier markets. The Fund's shareholders include KfW and FSD Africa Investments.
African Local Currency Bond Fund: The ALCB Fund was founded by KfW in 2012 on behalf of the German Ministry for Economic Cooperation and Development (BMZ). The Fund’s mission is to support the development of African capital markets by promoting primary corporate bond issuances in local currency. This is achieved by supporting African issuers, investors and intermediaries, acting as an anchor investor and providing technical assistance. Website: www.alcbfund.com.
About M&G Investments: M&G Investments is part of M&G plc, a savings and investments company with £387 billion of assets under management (as at 30 June 2026). M&G plc has customers in the UK, Europe, the Americas and Asia, including individual savers and investors, life insurance policy holders and pension scheme members.
For nearly nine decades M&G Investments has been helping its customers to prosper by putting investments to work, which in turn creates jobs, homes and vital infrastructure in the real economy. Its investment solutions span equities, fixed income, multi asset, cash, private debt, infrastructure and real estate.
M&G plc recognises the importance of responsible investing, is a signatory (both as an asset manager and owner) to the UN supported Principles for Responsible Investment (PRI), and is targeting net zero emissions by 2050, across our investment portfolios and operations. For more information, please visit: www.mandg.com [GG2.1]
Cygnum Capital: Cygnum Capital is a specialist investment bank and asset manager focused on frontier and emerging markets. Since 2008, the firm has delivered innovative, impact-driven financial solutions tailored to the evolving needs of its clients, with a global footprint and deep regional expertise. Website: www.cygnumcapital.com.
