The ALCB Fund’s Technical Assistance Facility (ALCBF TAF) became operational in 2015 and is managed by LHGP Asset Management. The ALCBF TAF provides supplementary resources to issuers, ensuring that bankable local currency deals come to market and appropriate incentives are in place for issuers, investors and intermediaries.

The TA Facility is funded by KfW and FSD Africa through grants of EUR 2 million and GBP 0.5 million respectively. The ALCBF TAF is governed by a TAF Committee which is responsible approving disbursements and overseeing assignments. The TAF Manager, LHGP Asset Management, is responsible for originating TA assignments to the TAF, presenting proposals to the TAFC and monitoring implementation on its behalf. In order to ensure transparency, integrity and quality, the ALCBF TAF has approved established guidelines with standardised procurement, evaluation and contracting procedures.

TA activities are broadly categorized into the five categories below.

Transaction Support

Providing financial and technical support, on a cost sharing basis, in the appointment of legal or accounting advisors, credit ratings, green bond program structuring costs, and fixed-fee costs of an arranger on a case by case basis.

Issuer Capacity

Providing financial support on a cost-sharing basis, in relation to SMART/Social Ratings, early-stage bond program development, and ESMS implementation

Product Development

Financing for new products/initiatives that can promote capital market development and deal origination for the Fund

Knowledge Building

Ad-hoc knowledge products developed for dissemination to stakeholders.

Market Studies

Funding scoping studies for frontier markets or specific sectors to assess the general conditions for bond issuance. This involves mapping the institutions, investors and supporting market infrastructure and exploring specific barriers in target markets.

Examples of TA Support:

CBI Endorsement of GBCSA’s green star rating tool:

In partnership with the Green Building Council of South Africa (GBCSA), provided technical support in the development of a roadmap for Climate Bond Initiative’s Green Bond Certification for the commercial and residential property sector in the country.

Tanzania institutional investor workshop:

Worked with the Trade and Development Bank on an investor roadshow for its upcoming MTN programme. ALCB Fund participants utilised the roadshow to discuss broader market development considerations with local investors.

Honde Hydro Environmental and Social Action Plan (ESAP):

HHPC is an independent power producer (IPP) that develops and operates hydro-electric projects in Zimbabwe. The TAF supported in the appointment of an environmental and social technical consultant, Mott MacDonald, to support the implementation of HPC’s ESAP

TA Facility

The ALCB Fund’s Technical Assistance Facility started in 2015 and provides supplementary resources to issuers. This ensures that bankable local currency deals come to market and appropriate incentives are in place for issuers, investors and intermediaries.

The TA Facility is funded by KfW and FSD Africa and is governed by a TA Facility Committee (TAFC) which approves disbursements and oversees assignments. The TA Facility Manager, LHGP Asset Management, is responsible for originating assignments, presenting proposals to the TAFC and monitoring implementation on its behalf. To ensure transparency, integrity and quality, the ALCBF TA Facility has approved established guidelines with standardised procurement, evaluation and contracting procedures.

Transaction Support

Providing financial and technical support, on a cost sharing basis, in the appointment of legal or accounting advisors, credit ratings, green bond program structuring costs, and fixed-fee costs of an arranger on a case by case basis.

5 Point bar that joins TA Facilities

Market Studies

Funding scoping studies for frontier markets or specific sectors to assess the general conditions for bond issuance. This involves mapping the institutions, investors and supporting market infrastructure and exploring specific barriers in target markets.

Knowledge Building

Ad-hoc knowledge products developed for dissemination to stakeholders.

Product Development

Financing for new products/initiatives that can promote capital market development and deal origination for the Fund

Issuer Capacity

Providing financial support on a cost-sharing basis, in relation to SMART/Social Ratings, early-stage bond program development, and ESMS implementation

TA activities are broadly categorized into the following five categories.

Examples of TA Support:

CBI Endorsement of GBCSA’s green star rating tool:

In partnership with the Green Building Council of South Africa (GBCSA), the TA Facility provided technical support in the development of a roadmap for Climate Bond Initiative’s Green Bond Certification for the commercial and residential property sector in the country.

Tanzania institutional investor workshop:

The TA Facility worked with the Trade and Development Bank on an investor roadshow for its upcoming MTN programme. ALCB Fund participants utilised the roadshow to discuss broader market development considerations with local investors.

Honde Hydro Environmental and Social Action Plan (ESAP):

HHPC is an independent power producer (IPP) that develops and operates hydro-electric projects in Zimbabwe. The TA Facility supported in the appointment of an environmental and social technical consultant, Mott MacDonald, to support the implementation of HPC’s ESAP.