ALCB Fund supports four African thematic bond issuances, surpassing USD 300 million in cumulative capital deployed

27 December 2023 – The ALCB Fund has invested USD 25 million across four thematic bonds on the African continent in Q4 2023. This included:  

• TZS 15 billion (USD 6 m) in a green bond issued by the Cooperative and Rural Development Bank (“CRDB”), proceeds of which will be used to for eligible green loans in Tanzania.
• USD 8 million green bond issued by Copperbelt Energy Corporation Renewables (“CEC-R”), to develop new renewable projects in Zambia.
• XOF 6 billion (USD 10 m) social securitisation issued by the Programme Electricité Pour Tous (“PEPT”) Fund, with proceeds used to support electricity access for up to 800,000 low-income households in Cote d’Ivoire.  
• TZS 2.5 billion (USD 1 m) sustainability bond issued by the National Microfinance Bank (“NMB”), with eligible lending including affordable housing and climate change adaptation projects in Tanzania.  

All notes obtained second party opinions from qualified international service providers (Sustainalytics or Moody’s) and have impact indicators that align to the UN Sustainable Development Goals (SDGs).

Brock Hoback, Fund Lead of the ALCB Fund, said "encouraging the development of the thematic bond market is a key pillar in the Fund’s wider capital markets development mandate. While hard currency thematic issuances are becoming more common, such issuances remain rare in most African local currency bond markets. We hope these recent transactions will act as a catalyst and benchmark for future issuances; while channelling private capital to developmental and green-growth oriented sectors.”  

Through these investments, in Q4 the ALCB Fund has also reached a historic milestone of surpassing USD 300 million in capital deployed since inception, with investments across 19 countries and 86 bond issuances, and co-investment of over USD 2.5 billion.

Alternative Investment Fund Manager / Portfolio Manager  
 

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