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African Local Currency Bond Fund (ALCBF)



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

Investment Details


African Local Currency Bond Fund (ALCBF)


Deepening Africa’s local currency bond markets


Capital Markets


Senegal, Cote d’Ivoire, Ghana, Togo, Nigeria, Gabon, South Africa, Botswana, Lesotho, Zambia, Eswatini, Mozambique, Malawi, Namibia, Kenya, Uganda, Zimbabwe, Cameroon

In portfolio since


Our role

  • FSDAi invested in ALCBF to address the underdevelopment of local currency bond markets in Africa. We provided equity and debt to enable the fund to leverage debt funding, and supported LGHP and the anchor investor, KFW, to establish a fund that now stands at USD 118.8 million outstanding portfolio.
  • The aim of the investment is to improve 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.
  • The ALCB Fund itself provides technical assistance to African issuers, investors, and intermediaries and acts as an anchor investor in local bond issuances by helping mobilise domestic capital and crowding in local investors.
  • Alongside our investment in ALCBF, FSD Africa extended a grant to ensure Technical Assistance is disseminated among donors, issuers, and investor communities to inform bond market development strategies and roadmaps.

Our investment

Committed capital: £16.15 million

Instrument: Equity and Debt

* Equity and Debt investment of £15.3mn Grant of £850,000


Purpose and target market

  • Contribute to local capital market development. 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
  •  Improve the financial capacity of local issuers. The fund has been able to reduce the forex currency exposure of its borrowers and improved the affordability of funding.
  • Support investment in developmental sectors including affordable housing, green infrastructure, MSME finance, and agriculture.

Impact to date

5 million Customers given access to basic services through ALCBF investments in renewables

1.6 million Households connected to clean energy distributors via ALCBF investments

3.7 million individuals and MSMEs provided with improved access to financial services

70 #Bonds issued to date

USD 220m Value of Bond investments to date

USD 1,840m Private sector co-investment mobilized

Investee contacts

LHGP Asset Management, 130-132 Buckingham Palace Road, London, SW1W 9SA, United Kingdom

FSD Africa contact

Riverside Green Suites (Palm Suite), Riverside Drive, Nairobi

Updated: October, 2022