The ALCBF promotes primary corporate bond issuances in local currency by working with African issuers, investors, and intermediaries to bring new deals to market. The Fund does so by acting as an anchor investor and through technical assistance, investing in transactions where the ultimate beneficiaries are low-income households and MSMEs. Focus sectors include financial inclusion, infrastructure, agriculture, housing, education, healthcare, and renewable energy.
GBP 15m
The investment addresses the underdevelopment of local currency bond markets in Africa. The fund contributes to improving access to long-term funding for issuers in green infrastructure, renewable energy, agribusiness, manufacturing, financial and other service sectors, as an alternative source of funding from the traditional short-term loans and overdrafts increasing the volume bond transactions and crowding in of local currency long term finance.
Based on the ALCBF 2021 impact report, since inception the fund has attained a multiplier of USD10.1 for every dollar invested, and the funds issuers have raised funding from a total of 4,370 investors.
With improved financial capacity of local issuers and better data for investors the fund has been able to support investments in developmental sectors including affordable housing, green infrastructure, MSME finance, and agriculture, as well as reduce forex currency exposure of its borrowers, and improve the affordability of funding.
“We value the longstanding commitment of FSDAi to the ALCB Fund. Our shared objectives, including the development of African capital markets, has supported many businesses and low-income households across the continent.” Brock Hoback, LHGP Asset Management (Fund Lead to ALCBF)
ACV’s impact measurement approach will evolve as we learn more about building businesses in the climate space and partner with new impact investors and actors.