Case Study: Baobab Senegal
The ALCB Fund invested in Baobab Senegal’s inaugural bond issuance in 2016, which was undersubscribed. Given the lessons learnt from its first book build, Baobab Senegal approached the ALCBF’s Technical Assistance Facility (TAF) to support a second bond issuance. The company identified a new lead arranger to address many of these issues by: broadening the base of potential investors, improving the marketing of the bond and investor sensitisation, increasing the credibility of the transaction, and providing enhanced structuring capabilities. In response, the TAF agreed to run the selection process for a new adviser which led to the full subscription of Baobab Senegal’s bond issued in 2019 with the participation of the ALCB Fund.
Climate Bond Initiative Endorses GBSA Net Zero/Positive Carbon Rating Tool
The Climate Bonds Initiative (CBI) has endorsed the Green Building Council of South Africa’s (“GBCSA”) Net Zero/Positive Carbon proxy certification as a “Net Zero Carbon” compliance path for the South African commercial and residential property segments. The Net Zero/Net Positive carbon rating certifies whether a building can neutralise or redress its carbon impact on the environment and is applicable to both new and existing buildings. The endorsement was confirmed 4 September 2019 during a Technical Working Group session.
Reviewing the Methodologies for Certifying Buildings Under the CBI's Low Carbon Building Criteria
This report has been prepared during 2019 and issued on 10 September 2019 by Andre Harms and Cornelia Oberholzer of Ecolution Consulting (www.ecolution.co.za), a green building and sustainability consulting firm. Ecolution Consulting provides a wide range of consulting and advisory services to various sectors and organisations. Ecolution can be contacted at firstname.lastname@example.org. This report is an integral part of and is to be read in conjunction with the report titled “SOUTH AFRICA SCOPING STUDY: Assessing the Potential for Green Bonds Financing Green Buildings” prepared by Consulting for Sustainable Solutions.
Assessing the Potential for Green Bonds Financing Green Buildings
This report has been prepared by Megan Sager, Adrian Lotter and Sarah Palhol of Consulting for Sustainable Solutions (www.sustainablesolutions.co.za), a consulting and advisory firm facilitating the flow of capital into sustainable property and infrastructure to enable cities of the future. Consulting for Sustainable Solutions is based in Cape Town, South Africa. CSS can be contacted at email@example.com. This report is to be read in conjunction with the report titled South African Study: Reviewing the methodologies for certifying buildings under the CBI’s Low Carbon Building criteria by Ecolution Consulting. CSS is grateful to the ALCB Fund’s Technical Assistance Facility for making this work possible, and the GBCSA for making extensive data and input available to support achievement of study outcomes.
Baobab Senegal Successfully Issues Bond of FCFA 10 Billion
Baobab Senegal announces the emission of a bond for a total amount of FCFA 10 billion (EUR 15.2 million) subscribed at 100%, at 7 years, with a coupon of 7.50% per annum.
Listing on the Regional Stock Exchange of the UEMOA (BRVM) of the 8th bond issue of CRRH
The Regional Mortgage Refinancing Fund (CRRH-UEMOA) conducted on Thursday, June 27, 2019 in Abidjan, the first listing on the Regional Stock Exchange of the UEMOA (BRVM) of its 8th bond issue called "CRRH-UEMOA 5 , 95% 2018 2030 "&" CRRH-UEMOA 6.05% 2018-2033 ". This loan was issued in two tranches of 12 years and 15 years on the regional financial market from October 30 to January 15, 2019 and raised CFAF 30.2 billion, ie the CFAF 30 billion sought for the refinancing of loans. housing granted by CRRH-UEMOA's shareholder banks.
Moody's assigns first-time Baa2 rating to the ALCB Fund, outlook stable
Moody's Investors Service ("Moody's") has assigned a first-time Baa2 foreign currency long-term issuer rating to the African Local Currency Bond Fund (ALCB Fund). The outlook is stable.
Nedbank Limited lists a Green Bond on the Johannesburg Stock Exchange (JSE)
Johannesburg, 30 April 2019: Today, the JSE celebrated Nedbank Limited's listing on its Green Bond Segment. Nedbank Limited is the first commercial bank in South Africa to list a green bond on the JSE’s Green Bonds segment.
FMDQ Admits Mixta Real Estate (Nigeria) PLC Bonds and Commercial Papers
The listing of the Mixta Real Estate PLC ₦2.96bn Tranche A and ₦2.32bn Tranche B Series 2 Bonds (the “Mixta Bonds”) under a ₦30.00bn Debt Issuance Programme and the quotation of the Mixta Real Estate PLC ₦9.84bn Series 1 and ₦2.08bn Series 2 Commercial Papers (the “Mixta CPs”) under a ₦15.00bn Commercial Paper Issuance Programme, on FMDQ OTC Securities Exchange (FMDQ) is another significant contribution inspiring confidence in the Nigerian markets as housing and infrastructure development progressively takes form.
Listing of the bond loan "SENELEC 6.50% 2018-2025
The first listing of the public bond issue called "SENELEC 6.50% 2018-2025", admitted to the bond compartment of the UEMOA Regional Stock Exchange (BRVM), took place January 15, 2019.
Wara confirms long-term rating "tAA" to senior bonds issued by FCTC COFINA
WARA has affirmed the long-term rating "tAA" for senior bonds issued by the FCTC-COFINA Joint Debt Securitization Fund after its first semi-annual review. The perspective remains stable. West Africa Rating Agency (WARA) has declared, as of October 26, the long-term regional currency rating "tAA" of the "senior" bonds issued by the COFINA Group's FCTC, for an initial nominal amount of $ 10 billion. CFA. These bonds carry a residual maturity of 12 months. For reference, this "tAA" rating is two notches below the maximum rating permitted by the rating agency's regional scale. The perspective remains stable. The underlying portfolio performed as expected during the first six months of issuance.
Alios Cote d'Ivoire's long-term rating "BBB +" affirmed by Bloomfield
The rating agency Bloomfield Investment Corporation has awarded ALIOS FINANCE Côte d'Ivoire a long-term BBB + and A1 short-term rating, with Stable Outlook for each period.
Baobab Senegal's long-term rating is upgraded from "BBB" to "BBB + affirmed by WARA
Dakar, 09/25/18 - West Africa Rating Agency (WARA) today announced the publication of the third Microcred Senegal (MCS) rating. On WARA's regional scale, MCS's long-term rating is upgraded from "BBB" to "BBB +" in investment grade, while its short-term rating is also upgraded from "w-4" to "high". w-3 ".
Agusto&Co affirms LAPO Microfinance Bank's "A-"
LAPO Microfinance Bank Limited’s (‘LAPO’ or ‘the Bank’) rating reflects the Bank’s strong market position, good capitalisation, good liquidity and funding profile. However, the rating is constrained by the rising level of impaired loans, increasing operating costs and the impact of low BVN compliance on loan disbursements and profitability. The rating is also tempered by the fragile but improving economy which continues to impact the quality of the Bank’s loan portfolio.
GCR Affirms Dufil Prima Foods PLC’s National Scale Rating At A-(NG); Outlook Positive
Lagos, 06 July, 2018—Global Credit Ratings has affirmed the long term and short term national scale issuer ratings of A-(NG) and A2(NG) respectively, assigned to Dufil Prima Foods PLC, with the outlook accorded as Positive. Concurrently, the rating of A-(NG) accorded to the N10bn Series 1 bond was also affirmed, with outlook accorded as Positive.
GCR affirms AFB (Ghana) Plc’s rating of BB+(GH); Outlook Positive
Johannesburg, 28 May 2018—Global Credit Ratings has affirmed AFB (Ghana) Plc’s long-term and short-term national scale ratings of BB+(GH) and B(GH) respectively; with the outlook accorded as Positive. The ratings are valid until May 2019.
Infracredit’s Guarantee supports NSP in first 15-year Corporate Green Infrastructure Bond in Nigeria
February 2019: InfraCredit, an ‘AAA’ rated infrastructure credit enhancement facility backed by the Nigeria Sovereign Investment Authority, GuarantCo, KfW and AFC, is pleased to announce its guarantee of North South Power (NSP) NGN 8.5billion 15-Year 15.60% Series 1 Guaranteed Fixed Rate Senior Green Infrastructure Bonds Due 2034 (the “Series 1 Green Bonds”) under a NGN 50billion Debt Issuance Programme. NSP is the operator of a 30-year concession on the 600MW Shiroro Hydroelectric Power Plant. With InfraCredit’s guarantee, the Series 1 Green Bonds was accorded a ‘AAA’ credit rating by Agusto and GCR and issued on 27th February 2019 as the first certified corporate green bond and the longest tenored (15-year) corporate bond issued in the Nigerian debt capital markets approved by the SEC.
Assessing the Potential to Issue Non-Sovereign Local Currency Bonds in Madagascar
November 2018 -- The ALCB Fund, through its TA Facility, commissioned an assessment of the potential to issue non-sovereign local currency bonds in Madagascar.
Comparison of bond listing requirements across Africa
With the support of PwC, the ALCB Fund has compiled details of the listing requirements for bonds in 20 African countries.
Environmental and Social Management System (ESMS) Toolkit for Housing Finance Companies
This downloadable folder is a toolkit designed to support housing finance companies (mortgage, micro-housing, etc.) in developing their ESMS. This includes three documents which are: (a) The overarching toolkit, (b) a self-assessment questionnaire, and (c) an ESMS compliance template.
OPIC and AfDB Announce Investment in ALCB Fund
March 2018 -- US Overseas Private Investment Corporation (OPIC), the African Development Bank, and KfW support to African Local Currency Bond (ALCB) Fund to focus on housing, microlending, and agriculture projects.
FMDQ Admits N3.15bn LAPO MFB SPV PLC Bond to its Platform
March 2018 -- FMDQ OTC Securities Exchange (“FMDQ” or the “OTC Exchange”) admitted on its platform the LAPO MFB SPV PLC Series 1 ₦3.15bn 17.75% 5-year Fixed Rate Senior Unsecured Bond (the “LAPO MFB SPV Bond”) under a ₦20.00bn Bond Issuance Programme. In a statement given by the Chairman of the Board of Directors of African Local Currency Bond (“ALCB”) Fund, one of the key investors in the bond, Mr. Karl Von Klitzing commented that the ALCB Fund was delighted to have anchored the first bond issued by a microfinance bank in Nigeria.
Growthpoint becomes the first company to issue a Green Bond on the JSE
March 2018 -- Growthpoint Properties is the first South African company to issue a Green Bond on the Johannesburg Stock Exchange (JSE). The Growthpoint Green Bonds, for terms of five, seven and ten years, were issued and listed on the JSE on Friday, 9 March 2018. Green Bonds raise money that is specially allocated for funding projects that result in positive environmental and climate benefits. The R1.1 billion (USD94 million) Green Bonds issued by Growthpoint.
Listing and Issuance Guidelines for Nine African Countries
March 2018 -- The ALCB Fund, through its TA Facility, commissioned an assessment of listing and issuance guidelines by country, as part of its support to one of the regional regulators. This presentation summarises the guidelines for Botswana, Egypt, Kenya, Malawi, Mauritius, Namibia, Nigeria, Rwanda and South Africa. The assessment was undertaken with the assistance of PwC and is currently being expanded to include most other African countries, and will be published in April 2018.
Capital Market Studies: Cameroon, DRC, Liberia and Sierra Leone
March 2018 -- The ALCB Fund's Technical Assistance Facility engaged consultants to explore the development of local capital markets in four African countries (Cameroon, DRC, Liberia and Sierra Leone). This paper provides a summary of the reports' findings.
Understanding the African Housing Finance Market
March 2018 -- The market for housing in Africa is affected by the twin problems of affordability (level of income and price of the house) and access to financing. Despite the significant housing stock deficit, across a large number of countries the level of effective demand remains low; this is a direct result of the high cost of the current housing purchase options available in the market and the low percentage of the population deemed capable of affording or financing these purchases through traditional mortgage loans. This paper explores the different African housing finance products available and funding activities of housing finance providers.
The African Green Bond Market (2018 Updated)
March 2018 -- This memo provides an overview of the global green bond market as well as background and context on market standards and market development to date. The paper then provides insight in to the current status of green bonds in Africa. While lagging relative to other geographies, their has been noticeable movement in three Sub-Saharan countries to drive development forward. This paper provides insight in to these developments.
Convergence Capital - ALCB Fund Case Study
December 2017 -- The African Local Currency Bond (ALCB) Fund provides anchor investment and technical assistance to first-time or innovative local currency bond issuances from financial institutions and companies operating in developmental sectors in African countries. As of June 2017, the ALCB Fund had invested in 18 bond issuances across 14 companies in nine countries, including Botswana, Ghana, Kenya, Cote D’Ivoire and Zambia.
Solar Plaza - Evolving Business Models in Emerging Markets (ALCB Fund Article)
December 2017 (Pg. 10) -- The African Local Currency Bond (“ALCB”) Fund is primarily focused on investing in first-time corporate issuers in Africa, in the sectors of financial inclusion, housing, renewable energy, agriculture, education and healthcare. Its unique and impactful investment strategy in Botswana motivated us to profile the initiative in this report, as the success of its investments in local currency ultimately led to a second and third investment round in the following years
The ALCB Fund and FMO boost local currency financing and African capital market development
Nairobi, 6 October 2017 -- FMO has agreed to provide a long-term loan of USD 10 million to the African Local Currency Bond Fund (ALCB Fund). The ALCB Fund acts as an innovative anchor investor in local currency bond issuances across the African continent.
Microcred Senegal - September 2017 Ratings Affirmation
Dakar, 28 September 2017 -- West Africa Rating Agency (WARA) announces today the publication of its rating review on Microcred Senegal (MCS). On WARA’s regional rating scale, the long-term rating of MCS is affirmed at ‘BBB’, in the investment-grade category, while its short-term rating remains ‘w-4’.
CNBC interview: IFC's $20mn investment in fund for African bond markets
The International Finance Corporation has announced that it will invest $20 million in the African Local Currency Bond Fund. The fund will help develop local currency markets in Africa. CNBC Africa's Nozipho Mbanjwa spoke to Karl von Klitzing, Project Manager at KfW Development Bank and James Doree, Director at Lion's Head Global Partners for more ...
IFC announces investment of $20 million in the African Local Currency Bond Fund
Nairobi, Kenya, May 11, 2017 -- IFC, a member of the World Bank Group, today announced that it is investing $20 million in debt in the African Local Currency Bond Fund (ALCB Fund Ltd.) to help develop local currency capital markets in Africa. The ALCB Fund was established by KfW Development Bank on behalf of the German Ministry for Economic Cooperation and Development (BMZ) in 2012 to support the development of African bond markets and to improve private sector access to long-term, local currency financing ...
FSD Africa invests £15.3 million in the African Local Currency Bond Fund
Nairobi, 9th May 2017 – Financial Sector Deepening Africa (FSD Africa) and KfW Development Bank announce that they have agreed terms under which FSD Africa will invest £15.3 million in the African Local Currency Bond Fund (ALCBF). When fully subscribed, this fresh injection of capital will take ALCBF’s total equity to £53m, substantially increasing the fund’s investment firepower ...
AFB Ghana - April 2017 Ratings Affirmation
Johannesburg, 18 April 2017 -- Global Credit Ratings has today placed the following final, public long term credit rating of ‘BBB(GH)’ with a Stable Outlook accorded to the Medium Term Notes (‘MTN’) Programme of AFB (Ghana) PLC, Under Review.