Creating Local Currency Bond Financing Opportunities for African Infrastructure

Cambridge Economic Policy Associates (CEPA) was appointed by Ocorion Limited and LHGP Asset Management 18 Ltd. to identify approaches to promote opportunities for local currency (LCY) denominated bond financings of infrastructure projects in Africa.

Algeria Debt Capital Market Study

Study of the Algerian Debt Capital Markets

Understanding the African Housing Finance Market

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

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.

Reviewing the Methodologies for Certifying Buildings Under the CBI's Low Carbon Building Criteria

This report was prepared in 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 hello@ecolution.co.za. 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 info@sustainablesolutions.co.za. 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.

Assessing the Potential to Issue Non-Sovereign Local Currency Bonds in Madagascar

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.

Listing and Issuance Guidelines for Nine African Countries

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.

Capital Market Studies: Cameroon, DRC, Liberia and Sierra Leone

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.

Alios Cote d'Ivoire's long-term rating "BBB +" affirmed by Bloomfield

Alios Finance Côte d’Ivoire rating maintained at BBB+, outlook stable - In the short term, there is certainty of very high timely reimbursement and liquidity factors are excellent and supported by good protective factors for essential elements. Over the longer term, protective factors appropriate and considered sufficient for prudent investments. However, there is a considerable variability in risk over the course of business cycles.

WARA classifies Baobab Senegal's rating as BBB+

West Africa Rating Agency (WARA) has classified Baobab Senegal's long-term rating to "BBB +", in investment grade, while that its short-term rating is "w-3". The perspective attached to these ratings remains stable

S&P has assigned long-term 'zaAA+ (sf)' ratings to Bayport Securitisation (RF)'s class A BAYA86, BAYA87, BAYA88, BAYA69U, and BAYA70U notes

S&P Global Ratings assigned its long-term 'zaAA+ (sf)' credit rating to Bayport Securitisation (RF) Ltd.'s class A BAYA86, BAYA87, BAYA88, BAYA69U, and BAYA70U notes. At the same time, S&P have lowered the ratings on the outstanding class A notes to 'zaAA+ (sf)' from 'zaAAA (sf)'

Wara assigns Senegal Habitat Bank with regional scale BBB rating

West Africa Rating Agency (WARA) announced the publication of the first rating of the issue BHS bond, with the bond amount of 20 billion CFA francs. The grade awarded by WARA is "BBB"

Moody's assigns first-time Ba2 corporate family rating and Ba3 long-term foreign currency issuer rating to CRRH-UEMOA

Moody's Investors Service ("Moody's") has assigned the following first-time ratings to Caisse Regionale de Refinancement Hypothecaire de l'UEMOA (CRRH-UEMOA): Ba2 long-term corporate family rating (CFR), Ba2/Not Prime long and short-term local currency (LC) issuer ratings, as well as Ba3/Not Prime long and short-term foreign currency (FC) issuer ratings. The outlook is stable for the entity

Fitch Affirms Enda Tamweel at 'BBB-(tun)'; Outlook Stable

Fitch Ratings has affirmed Enda Tamweel S.A.'s (Enda) National Long- and Short-Term Ratings at 'BBB-(tun)' and 'F3(tun)', respectively. The Outlook on the National Long-Term Rating is Stable.

GCR affirms North South Power Company Limited’s National Scale Rating of A-(NG); Outlook Stable

Global Credit Ratings has affirmed the national scale rating assigned to North South Power Company Limited of A-(NG) and A2(NG), in the long term and short term respectively; with the outlook accorded as Stable. The ratings are valid until October 2021.

Bloomfield Investment assigns a long-term A rating (investment rating) with a stable outlook to Oragroup

On the occasion of Oragroup SA's first financial rating, the Bloomfield Investment Corporation rating agency assigned it the following ratings: long-term, A rating (investment rating), with a stable outlook; and in the short term, the A2 rating (investment rating), with a stable outlook. These ratings illustrate the credit quality of Oragroup SA

GCR affirms Real People Investment Holdings Limited’s Servicer Quality Ratings, Outlook Stable

GCR Ratings (‘GCR’) has affirmed Real People Investment Holdings Limited’s national scale primary and special servicer ratings of SQ2-(ZA)/SQ2(ZA) respectively, with outlooks accorded as Stable. The national scale servicer quality ratings on Real People Investment Holdings Limited (‘Real People’, ‘the group’) balance a fairly strong debt collection profile, stable technology and internal control environment, good management team and a moderately weak financial profile.

WARA assigns Senelec A- regional scale rating

West Africa Rating Agency (WARA) announces the publication of the third rating of Senelec (the National Electricity of Senegal). On the regional scale, WARA assigns Senelec the long-term rating of "A-", while its rating of short term is "w-3". Perspective attached to these ratings remains stable.

WARA affirms the long term rating of "AA-" to Sonatel.

On its regional scale, WARA affirms in December 2020 the long-term rating of "AA-" to Sonatel, in investment grade, while its short term rating is "w-2". The perspective attached to these ratings remains stable

Bloomfield maintains unchanged the A + rating of NSIA Banque Côte d’Ivoire

Bloomfield Investment Corporation has maintained unchanged the “A + with a stable outlook” rating awarded to NSIA Banque Côte d’Ivoire, the executives of the Abidjan-based rating agency said. This structure also kept the short-term rating “A1 with a stable outlook” unchanged. The rating is valid from August 2020 to July 2021

Moody's lowers Growthpoint Properties' rating to Ba2

On 26 November 2020, Moody downgraded the rating of Growthpoint Properties Limited (Growthpoint) to Ba2 from Ba1. The rating action follows the rating action on the South African sovereign and reflects Growthpoint's significant exposure to the real estate market in South Africa

Oragroup SA rating affirmed as stable

Oragroup SA is considered to be a high quality credit with robust protective factors. In the short term, certainty of repayment is good and liquidity factors and essential elements of societies are healthy. In the long term however, risk factors are more variable and more important in the period of economic pressure.

GCR affirms Dufil Prima Food PLC's national scale rating at A- Outlook Stable

Global Credit Ratings has affirmed the long and short term national scale issuer ratings of A- and A2 respectively, assigned to Dufil Prima Foods PLC ("Dufil" or "the Company") with the outlook accorded as Stable. Concurrently, the rating of A- accorded to the N10bn Series 1 bond was also affirmed, with outlook accorded as Stable

GCR Downgrades LAPO Microfinance Bank Limited’s National Scale Rating to BBB(NG); Outlook Stable

Global Credit Ratings has downgraded the national scale ratings assigned to LAPO Microfinance Bank Limited to BBB(NG) and A3(NG) in the long and short term respectively; with the outlook accorded as Stable. The ratings are valid until November 2021.

GCR affirms Letshego Ghana’s issuer ratings with a Negative outlook, reflecting mounting asset quality and capitalisation pressure

GCR Ratings (“GCR”) has affirmed Letshego Ghana Savings and Loans PLC’s, (formerly known as AFB (Ghana) Plc) national scale long term issuer and short-term issuer ratings of BB+(GH) and B(GH) respectively, with a Negative Outlook. Concurrently, the national scale long term issue ratings of the senior unsecured notes under the Medium Term Notes (“MTN”) programme were downgraded to BB+(GH) from BBB+(GH), with a Negative Outlook.

GCR downgrades Mixta Real Estate Plc’s Rating to BB+(NG); Outlook: Stable

Global Credit Rating Co. Limited (“GCR”) has downgraded the national scale ratings assigned to Mixta Real Estate Plc (“Mixta Nigeria” or “the Group”) of BB+(NG) and B(NG) in the long term and short term respectively, with the outlook accorded as Stable. Concurrently, the national scale ratings accorded to Mixta Nigeria’s Bond Issuances were also downgraded as follows: N4.5bn Series 1 Guaranteed Bonds: AA-(NG)(EL), Stable Outlook N2.961bn Series 2 Tranche A Guaranteed Bonds: AA-(NG)(EL), Stable Outlook N2.32bn Series 2 Tranche B Secured Bonds: BBB(NG)(EL), Stable Outlook

Moody's credit update on Nedbank

Nedbank Limited's (Nedbank) long-term deposit and senior unsecured debt ratings of Ba2 with a negative outlook reflect the bank's standalone creditworthiness, as indicated by its ba2 Baseline Credit Assessment (BCA)

GCR assigns Shelter Afrique an international scale long and short-term issuer credit rating of B-/ B

GCR Ratings (“GCR”) has assigned The Company for Habitat and Housing in Africa (‘Shelter Afrique’) international scale long and short-term issuer ratings of B- and B respectively, with the outlook accorded as Stable. At the same time, the following long and short-term national scale issuer ratings have been assigned: Kenyan National Scale ratings at A+(KE)/A1(KE), with outlook accorded as Stable. Nigerian National Scale ratings at AA(NG)/A1+(NG), with outlook accorded as Stable

S&P assigns long-term 'za AA+ (sf)' rating to Bayport Securitisation class A BAYA77 notes

London, 30 September 2019: S&P Global Ratings assigned its long-term 'zaAA+ (sf)' credit rating to Bayport Securitisation (RF) Ltd.'s class A BAYA77 notes. At the same time, S&P has affirmed the 'zaAA+ (sf)' ratings on the outstanding class A notes. Today's rating actions reflect credit and cash flow analysis using the most recent available collateral performance data (as of June 2019).

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.

Moody's takes action on five South African corporates following sovereign outlook change

Moody's has affirmed the Baa3 long-term issuer ratings and changed the outlook of the following companies to negative from stable: (i) Growthpoint Properties Limited, (ii) Redefine Properties Limited, (iii) Barloworld Limited, (iv) The Bidvest Group Limited, (v) Telkom SA SOC Limited

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 the first listing on the Regional Stock Exchange of the UEMOA (BRVM) of its 8th bond issue.. 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.

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

Nairobi, 22 February 2019: The listing of the Mixta Real Estate PLC ₦2.96bn Tranche A and ₦2.32bn Tranche B Series 2 Bonds (the “Mixta Bonds”) 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.

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.

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.

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’.

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.

AFB Ghana - October 2016 Ratings Affirmation

Johannesburg, 19 October 2016 -- Global Credit Ratings (‘GCR’) has affirmed the 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.

Moody's assigns first-time Baa2 rating to the ALCB Fund, outlook stable

ALCBF Ned Bank Press Release

The ALCB Fund is proud to announce its investment of ZAR 68 million (USD 5 million) in Nedbank’s Green Additional Tier 1 (AT1) bond issuance

ECL Calculator - Approach Paper

The ECL calculator is developed to aid the end user to quantify the credit risk associated with the financial instruments at the pre-investment stage

IFRS 9 Key Concepts

The objective of this document is to provide an understanding of the key concepts and requirements of IFRS9 primarily covering impairment methodology including a brief explanation on Classification and Measurement framework, Significant increase in credit risk, Definition of default, Modification and derecognition, Period over which to estimate ECL and ECL parameter modelling.

ECL Calculator - User Manual

The user manual covers the steps one need to follow to use the ECL calculator to generate ECL estimate under various scenarios

ECL Calculator

Press Release: KFW invests further EUR 7 million in the ALCB Fund

The ALCB Fund is proud to announce the closing of an additional equity investment of EUR 7 million (USD 8.4 million) by KfW on behalf of the Federal Ministry of Economic Cooperation and Development (BMZ).

Case Study: Baobab Senegal

The ALCB Fund has supported Baobab, providing technical assistance and acting as a key investor in its Senegalese bond programme. Following the success of the company’s 2019 issuance, Baobab plans to expand to expand its use of local currency bonds.

Introduction to the ALCB Fund

The Fund supports the development of African capital markets by promoting primary corporate bond issuance in local currency. For more information, please see this Introduction.

Press Release: Sonatel

ALCB Fund invests XOF 5.8 billion in Sonatel bond issuance, marking its eleventh anchor investment in the UEMOA region

Press Release: 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.

Summary Presentation

The ALCB Fund exists to mobilise domestic resources into high impact sectors (benefitting MSMEs/households), increasing private-sector resilience through reduced FX exposure and contributing towards more efficient allocation of domestic savings and greater financial self-reliance in African economies. For more information about the Fund, see the Summary Presentation.

Renewable Energy and Green Bond Activities

The ALCB Fund is active in renewable energy, including solar and hydro, and can invest in corporate bonds, project bonds, securitisations and bonds issued by financial institutions. The Fund is unlike traditional debt providers such as development finance institutions or banks – it helps developers and companies create structures that are appropriate for the capital markets. While the Fundʼs focus is on local currency, it can consider hard currency investments for renewable energy and prioritises Green Bonds.

Convergence Capital: ALCB Fund Case Study

Convergence is an institution that connects, educates, and supports investors to execute blended finance transactions that increase private sector investment in emerging markets. This case study explores the mission, role and impact of the ALCB Fund.

IFC announces investment of $20 million in the ALCB Fund

Nairobi, Kenya, May 11, 2017 -- IFC, a member of the World Bank Group, announced a $20 million in debt in the African Local Currency Bond Fund to help develop local currency capital markets in Africa.