The ALCB Fund has invested ZAR 40 million (USD 2.2 million) in a 4-year senior unsecured social bond issued by UsPlus Limited, a fintech enabled business providing working capital solutions to SMEs in South Africa.  This debut issuance totalled ZAR 40 million(USD 2.2 million) and marked the first tranche under the company’s ZAR 1billion bond programme.

This investment by the ALCB Fund was instrumental in bringing to market a thematic social bond and supporting UsPlus as a first-time issuer. UsPlus established a Social Bond Framework, whereby proceeds will be deployed to support Black-owned MSMEs, women-owned MSMEs, youth-owned MSMEs, and MSMEs located in priority provinces. Absa Alternative Asset Management (AAAM) invested alongside the ALCB Fund in the 3 year note of the tranche.

This investment in UsPlus is the ALCB Fund’s fourth outstanding investment in South Africa, bringing the Fund’s cumulative exposure to the country to USD 14.3 million.

Brock Hoback, Fund Lead of the ALCB Fund, said: “We are delighted to have supported UsPlus in its debut social-bond issuance alongside a domestic institutional investor. Although South Africa’s bond market is relatively developed, it is encouraging to see the coming to market of growing companies who use capital markets as a source of local currency funding. We believe the success of this transaction to be a pathway toward more issuances from similar companies, including thematic ones, which the ALCB Fund would look to support.”

Leonidas Kirkinis, Managing Director of UsPlus Limited said: “This collaboration highlights the vital role of social bonds in mobilizing capital for impactful projects, and it reinforces UsPlus' position as a catalyst for financial inclusion and economic empowerment in South Africa. The commitment from the ALCB fund, and the continued support from AAAM, are a testament to the crucial work being done by UsPlus to promote sustainable growth and support the nation's SME sector.”  

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