London, 21 August 2024 - The ALCB Fund has invested XOF 3 billion (USD 5 million) in the UMOA region’s historic first Green, Social and Sustainable (GSS) bond issued by Ecowas Bank for Investment and Development (EBID). As a regional DFI, EBID’s mandate is to promote economic integration and development in the ECOWAS region by supporting private and public sector projects.

The senior unsecured note, which has a 7 year tenor with a 2 year grace period, was issued through a public offering arranged by Impaxis Securities (Lead Arranger)along with Coris Bourse and EDC Investment Corporation (Lead Managers). The bond is publicly listed on the Bourse Régionale Des Valeurs Mobilières(BRVM).

This issuance will support the achievement of Sustainable Development Goals (SDGs) by channelling funds to projects in sectors such as agriculture, infrastructure, industry, renewable energy and SME lending. Local institutional investors such as pension funds, insurance companies and asset managers also participated in the issuance for a total amount raised of XOF 70 billion (USD 400 million).

This marks the ALCB Fund’s third investment in EBID, following its participation in the first two tranches of the MTN Programme, bringing the Fund’s total exposure to EBID at USD 15.9 million. This is the first thematic issuance by EBID and a regional DFI in the region.

Brock Hoback, Fund Lead of the ALCB Fund, said: “We are pleased to have participated in this innovative GSS bond issued by EBID. This thematic issuance marks the ALCB Fund’s third investment in EBID and an important step in the continued development of capital markets in the UMOA region. The Fund has been a consistent partner in EBID’s growth, previously having supported the Bank’s efforts to consolidate its governance structures and E&S management system. The UMOA region remains a market of great interest to the Fund and the success of this transaction reaffirms our view that regional prospects are attractive and regional DFIs play a crucial role in supporting broad-based inclusive economic growth. We hope that this GSS bond will act as a catalyst to encourage more thematic issuances in this region, which the ALCB Fund would be delighted to support.”

Dr. Andrews Amankwah, Director of the Treasury and Resource Mobilization Department said: “We thank the ALCB Fund for its continued support in EBID’s bond fundraising strategy. Raising local currency through these programmes has enabled us to diversify our investor base and reduce our foreign-exchange risk. The GSS bond issuance will play an important role in supporting the sectors referenced in the bond framework.”