ALCB Fund S.A. SICAV-RAIF
Status: Completed investmentWhy disclosure?
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In case of questions, please contact us at disclosure@fmo.nl
Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
The African Local Currency Bond Fund ("ALCB Fund" or "the Fund") acts as an innovative anchor investor in local currency bond issuances across the African continent. The bonds’ use of proceeds are predominantly in financial inclusion and, to a lesser extent, SME banks, housing, renewable energy and agriculture. To date, the Fund has mostly invested in bond issuances by (micro)finance institutions. Through its work, the Fund helps develop local capital markets. The ALCB Fund was established in 2012 and is an initiative of KFW, the German development bank, on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ).
What is our funding objective?
FMO partners with the ALCB Fund to stimulate longer term local currency financing for microfinance institutions and other non-sovereigns in Africa, to help build capital markets on the African continent and to stimulate investment in the bond issuances by local institutional investors. Local currency bond issuers minimize the exchange rate risk associated with USD funding usually secured from international investors. Building local capital markets will increase the accessibility and affordability of local currency finance, amongst others by helping increase the amount of investment opportunities in rated bond instruments for local institutional investors. The ecosystem of local capital market service providers benefits from increased deal flow that results from the Fund's activities.
Why do we fund this investment?
The innovative approach this Fund brings to increasing access to local currency funding for financial inclusion and broader development targets, working with partners such as KFW, fits with FMO's Strategy. At the same time, FMO contributes to SDG 1 "No Poverty" and SDG8 "Decent Work and Economic Growth" through this investment.
More investments
| Date | Total FMO financing |
|---|---|
| 10/24/2024 | USD 20.00 MLN |
- Website customer/investment
- http://www.alcbfund.com/
- Region
- Africa
- Country
- Africa
- Sector
- Financial Institutions
- Effective date
- 10/3/2017
- End date
- 5/24/2024
- Total FMO financing
- USD 10.00 MLN
- Funding
- FMO NV
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Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - B