London, 22 May 2026: The African Local Currency Bond Fund (ALCB Fund), managed by Cygnum Capital, is pleased to announce a landmark investment of RWF 16 billion (11 million) in the tap issuance of a Sustainability-Linked Bond (SLB) by the Development Bank of Rwanda (BRD Plc.).
The investment marks the ALCB Fund’s first investment in Rwanda and was made through a tap issuance under BRD’s second Sustainability-Linked Bond (SLB). Issued under BRD’s existing Note Programme, the tap issuance will support the Bank’s efforts to diversify its funding base and expand lending to high-impact sectors such as SME financing, energy, infrastructure and agriculture. The bond features a coupon adjustment mechanism linked to BRD’s performance against three sustainability KPIs: increasing the share of financing to women-led SMEs, supporting the delivery of affordable housing units, and expanding the implementation of the Environmental and Social Management System (ESMS) among participating institutions.
The investment benefited from subsidised currency hedging facilities through the Currency Exchange Fund (TCX), including the EU Market Creation Facility (EUMCF) funded by the European Commission (EC) under the European Fund for Sustainable Development Plus (EFSD+), and the SDG 7 Program funded by the German Federal Ministry for the Environment, Climate Action, Nature Conservation and Nuclear Safety (BMUKN). These blended finance facilities are designed to promote the use of local currency by addressing the core constraint posed by market-reflective hedging costs, which can limit international participation in local currency markets. Through this support, the ALCB Fund was able to hedge its Rwandan Franc exposure, enabling investment in local currency while mitigating foreign exchange risk and contributing to the development of deeper domestic capital markets.
Fola Pedro, Transaction Lead for the ALCB Fund, Cygnum Capital, commented: “We are pleased to participate in this Sustainability-Linked Bond issuance by BRD. This is the Fund’s first investment in Rwanda and supports BRD’s continued access to local currency funding and its lending to high-impact sectors. This transaction illustrates the continued relevance of sustainability-linked instruments in mobilising capital toward measurable development outcomes in the African capital markets.”
Stella Rusine Nteziryayo, Chief Executive Officer of BRD, said: “This transaction is a testament to BRD’s strong track record and its capacity to attract international investors such as the ALCB Fund. By mobilising capital in Rwandan Francs and diversifying its investor base, BRD will better deliver on its mission of catalysing inclusive growth across Rwanda, in line with the National Strategy for Transformation (“NST2”). This innovative thematic local-currency issuance also highlights our ongoing commitment to deeper and more dynamic capital markets in Rwanda for measurable development impact.”
Ruurd Brouwer, Chief Executive Officer of TCX, said: “We are excited to support BRD in diversifying its international investor base, whilst protecting the institution against the currency risk that otherwise comes with foreign funding. With the ALCB Fund, we helped create this first-of-its-kind hedging solution for sustainability-linked bonds in the Rwandan capital markets — a compelling proof of what local currency hedging can unlock. This was made possible by support from the EC-funded EU Market Creation Facility and the BMUKN-funded SDG 7 Program. It shows that with the right partners and the right frameworks in place, global liquidity can reach where it’s needed most.”
— END —
ALCB Fund: The African Local Currency Bond (“ALCB”) Fund is a dedicated investment vehicle that supports African local currency bond issuances to promote capital market development. It acts as an anchor investor in bond issuances by financial institutions, corporates, and impact-driven enterprises across Africa, enabling them to raise long-term local currency financing and reduce FX risk. The Fund was established in 2012 by KfW, on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ) and is managed by Cygnum Capital. The Fund also benefits from support from several development finance institutions, institutional investors, and impact investors, including FSD Africa Investments as an additional shareholder.
Website: www.alcbfund.com.
BRD: The Development Bank of Rwanda (“BRD”) is the country’s premier development bank. Established in 1967, BRD supports sustainable development by offering affordable, long-term, and tailored finance. Over the past decades, BRD has financed projects in key sectors including infrastructure, agriculture, affordable housing, education, green finance, exports, and manufacturing. BRD has achieved an “AAA” rating on long term domestic credit with a stable outlook by the Global Credit Rating Co. (GCR), reflecting BRD’s financial stability, strong support from shareholders and pivotal role in advancing Rwanda’s development
Website: www.brd.rw.
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.
TCX: TCX is a development finance initiative backed by a shareholder base that includes FMO, EBRD, KfW and IFC, as well as the European Commission and Dutch, Swiss, British, French, and German governments and other DFIs and microfinance vehicles. TCX protects borrowers in emerging and frontier markets from currency risk by facilitating currency hedges that transfer the risk to TCX's balance sheet. TCX offers derivative instruments – cross-currency swaps and FX forwards – in currencies not or insufficiently covered by commercial parties. Since starting operations in 2007, TCX has hedged a total volume of nearly USD 21 billion in development loans across 71 currencies.
Website: www.tcxfund.com.
