London, 11 July 2025: The African Local Currency Bond Fund (ALCB Fund) has successfully raised USD 30 million through the issuance of a 10-year bond under its Euro Medium Term Note (EMTN) programme. The bond was fully subscribed by a UK-based insurance company, marking a significant milestone as the Fund’s first private institutional investor.

Executed in collaboration with HSBC Continental Europe (HSBC) as dealer, the transaction will support the Fund’s continued growth and mission to deepen African capital markets by investing in high-impact local currency corporate bonds across the continent.

The transaction was structured under the ALCB Fund’s EMTN programme, which first launched in 2024 with its inaugural EUR 25 million bond issuance financed by the German Investment Corporation (DEG). This latest issuance marks a further evolution of the programme, with the notes listed on The International Stock Exchange (TISE) and rated Baa1 by Moody’s Investors Service.

The EMTN programme is expected to play a central role in scaling the Fund by providing a flexible and efficient platform for issuing notes to a broad group of international institutional investors.

“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 (SDGs),” 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 mobilise international private capital directly through the Fund itself, leveraging our robust capital structure underpinned by development finance institutions including KfW and FSD Africa Investments.”

"We are delighted to have supported the ALCB Fund in broadening its investor base and attracting institutional capital to support African markets," said Robert Anson, Vice President, Debt Syndicate at HSBC. "This transaction showcases how international bond markets can mobilise the private investment community for good and is expected to be a springboard from which other investors will participate"

Since its inception, the ALCB Fund has deployed over USD 420 million to 67 companies within the financial inclusion, renewable energy, affordable housing, and other critical sectors across Africa. At the portfolio level, the Fund has achieved a private capital mobilisation ratio of 9.1x. Now backed by both public and private investors, the Fund aims to continue acting as a catalyst for inclusive and sustainable economic development through deepening local capital markets.

The Fund is managed by Cygnum Capital.

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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 by acting as an anchor investor and providing technical assistance. Website: www.alcbfund.com.

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.