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.
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.