London, 11 February 2025 - The Africa Local Currency Bond Fund (ALCB Fund) has invested XAF 1.9billion (USD 3 million) in a XAF 5 billion (USD 8 million) bond issued by ACEP Cameroun (ACEP).

The ALCB Fund acted as anchor investor for this first-time issuance. The note was issued as a 3-year, semi-annual amortising repayment profile, with a coupon of 7%. The Bond will be listed on the BVMAC (Bourse des Valeurs Mobilières de l'Afrique Centrale). This transaction represents the first bond ever issued by a microfinance institution in the CEMAC bond market.

The funds raised by ACEP through this issuance will be directed to support the deployment of ACEP’s loan book. The company primarily provides affordable loans to microentrepreneurs operating in the urban areas of Cameroon. ACEP’s business activity has historically supported the economic empowerment of low-income households and other underserved population in Cameroon.

The ALCB Fund supported the arranger, USCA (Upline Securities Central Africa), in the structuring of the transaction. The quality of the note attracted various local co-investors, including two large Cameroonian asset managers. The bond was oversubscribed.  

Hack-Yann Akindele, CEO, ACEP Cameroun, said: “through this transaction, we succeeded in meeting our objectives of diversifying our funding base and increasing the duration of our liabilities. Hence, we will have the ability to expand our loan book and provide more funding to microentrepreneurs in Cameroon. We are extremely proud to have led the way for microfinance institutions to the bond market. Our expectation is that the bond market becomes an important source of funding for microfinanceinstitutions in the region. Finally, we are delighted to now have the ALCB Fund as one of our trusted partners.”

Michèle Atangana, CEO, USCA, said: “Our local bond market remains dominated by sovereign issuances, it can be quite challenging to bring a corporate on the market. The success of this transaction relies on many months of work and collaboration between ACEP,ALCB Fund, the regulators and USCA. We are proud to be paving the way for the development of the CEMAC’s corporates bond market and we value the support provided by ALCB Fund and Cygnum Capital during this process.”    

Franck Fodvo, Transaction Lead, Cygnum Capital, said: “This transaction marks our continuous commitment in supporting the development of local currency corporate bonds in the CEMAC region. ACEP’s operations closely align with ALCB Fund’s mandate to support low-income households and underserved population. We are proud to back an institution which supports the financial inclusion and financial empowerment in Cameroon. We expect this bond to be catalytic for the development of the regional corporates bond market, and we hope to see other microfinance institutions follow this example.”    

ACEP Cameroun: ACEP Cameroun is a microfinance institution specialised in providing affordable funding to microentrepreneurs, predominantly in the urban areas of Cameroun. The institution currently serves ca. 39,000 active clients through its 25branches network across the country, with a net loan book of XAF 31 billion(USD 51 million). ACEP Cameroun is affiliated to ACEP Group, a microfinance network with subsidiaries in Madagascar, Burkina Faso and Niger. Learn more: https://groupacep.com

Upline Securities Central Africa: USCA is a subsidiary of leading Moroccan banking group BCP, specialising in financial market activities and duly authorised by COSUMAF to provide investment services to both local and international issuers and investors. Based in the CEMAC region, USCA has proven expertise in assisting sovereign, quasi-sovereign, and private issuers to raise resources in local currency.

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ALCB 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. Learn more: www.alcbfund.com

Cygnum Capital Group: Cygnum Capital Group is an investment bank and asset manager operating across frontier and emerging markets. Formerly known as Lion’s Head, which was founded in 2008,Cygnum Capital is now a global provider of tailored and innovative financial solutions to meet its clients’ diverse needs. Learn more: www.cygnumcapital.com

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