Rotterdam, 24 September 2025: The African Local Currency Bond Fund (“ALCB Fund”), managed by Cygnum Capital, is pleased to announce a landmark USD 45 million investment by FMO, the Dutch entrepreneurial development bank, with co-participation from FMO Investment Management (FMO IM). The transaction represents a major milestone in the ALCB Fund’s mission to expand access to local currency financing across Africa, deepen domestic capital markets, and catalyse greater private capital flows into the continent.

The ALCB Fund was created to promote the development of African corporate bond markets by providing long-term, local currency finance to institutions that deliver broad-based impact. By anchoring bond issuances and mobilising private investors, the Fund plays a catalytic role in strengthening Africa’s financial architecture and enabling sustainable development. This new commitment by FMO and FMO IM highlights the continued confidence in the Fund’s ability to combine credit quality with developmental impact, and underscores the importance of blended finance partnerships in scaling solutions for emerging markets.

This marks FMO’s third investment in the ALCB Fund, following its initial USD 10 million loan in 2017 and a USD 20 million facility in 2024. For FMO Investment Management, it represents the organisation’s first-ever fund investment on behalf of one of its funds, demonstrating a new channel for mobilising institutional capital into African markets. The new facility has a tenor of 7 years, amortising after 4-years with a 3-year availability period.

The transaction was completed in alignment with FMO’s commitment to the UN Sustainable Development Goals (SDG #10: Reducing Inequalities). In line with both FMO’s and the Fund’s impact mandates, 50% of proceeds are earmarked for deployment in Least Developed Countries (LDCs) across Africa.

Brock Hoback, Fund Lead at the ALCB Fund (Cygnum Capital), said “We are delighted to welcome FMO and, for the first time, FMO Investment Management as partners in supporting the growth of the ALCB Fund. This additional USD 45 million will significantly enhance our capacity to support African corporate bond issuances in local currency, enabling issuers to access long-term financing while mitigating FX risks. The continued trust from FMO underscores the alignment of our developmental strategy, and the new investment from FMO Investment Management signals growing institutional investor confidence in the ALCB Fund’s credit quality and impact model.”

Angelica Ortiz-de Haas, manager Financial Institutions Africa, FMO, said “FMO is deeply committed to enlarging the scale and impact of local capital markets in Africa, which play a crucial role in improving macroeconomic resilience and providing a sustainable source of financing to companies that drive broad-based economic growth. Our third investment in the ALCB Fund demonstrates our ongoing belief in the Fund’s catalytic role in local currency bond markets. By supporting local currency bond issuance, FMO aims to advance financial inclusion, MSME growth, access to food and renewable energy, and strengthen resilience in Least Developed Countries.”

Nic Wessemius, Manager, FMO Investment Management, said “We are thrilled to make our first fund investment in the ALCB Fund. Through FMO Investment Management, we aim to unlock institutional investor participation in high-impact opportunities originated by FMO in emerging markets. Investing in the ALCB Fund aligns with our philosophy that financial returns and positive development outcomes go hand in hand. We look forward to further mobilising institutional capital alongside FMO to support inclusive and sustainable growth in Africa.”

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The African Local Currency Bond Fund: The ALCB Fund is a dedicated investment vehicle that supports African local currency bond issuances to promote capital market development. It 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 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.

Website: www.alcbfund.com

FMO: FMO is the Dutch entrepreneurial development bank. With over 50 years of experience, FMO invests in private sector projects in emerging and frontier markets that deliver both financial returns and development impact. FMO focuses on three key sectors: Agribusiness, Energy, and Financial Institutions, with cross-cutting themes such as climate action, financial inclusion, and reducing inequalities. As of 2024, FMO has a portfolio of more than EUR 12 billion across 85 countries.

Website: www.fmo.nl

FMO Investment Management:  FMO Investment Management B.V. is a 100% subsidiary of FMO and a licensed investment firm under Dutch law. FMO IM was created to mobilise institutional capital by providing professional investors access to FMO’s sustainable investment opportunities in emerging markets. By aligning investor mandates with FMO’s impact goals, FMO IM bridges the gap between development finance and institutional asset management.

Website: www.fmo-im.nl

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.

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