Eligibile Investments

  • Local currency transactions across the African continent.
  • Issuer should be a private institution operating in developmental sectors.
  • Ultimate beneficiaries of bond proceeds should be lower-income households and MSMEs.
  • Products which are tied either directly to local capital markets (public or private placement bonds, securitisations) or provide a route to future bond issuances (wholesale facilities, bridge-to-bond loans).
  • Local issuers, investors and intermediaries bringing innovative transactions in a local market.

Transaction Terms

Ticket Size:

ALCBF can invest between USD 1 to 10 million; with an average ticket size of between USD 2 and 5 million.


The Fund will generally invest in no more than 50% of an issuance unless there is a credible sell down strategy or the bond is part of a larger issue programme.


3 to 15 years, with case-by-case appetite for shorter dated commercial paper and MTN programmes.


The Fund prices to market, in line with the pricing of local co-investors. However, the Fund will only invest where pricing aligns with its target return and risk appetite.


Primarily senior debt with some scope for subordinated debt as well.

Investment Process

Initial Contact

The Fund Manager carries out initial screening and discussions with the issuer. This may include discussions on technical assistance requirements.

Investment Committee Memo

The Investment Managers of the ALCB Fund presents key information about the issuer and initial terms to the Investment Committee (IC). In order to move forward in the negotiation process, the Manager must secure a positive decision from the investment committee.

Full Investment Proposal

Investment Managers conduct due diligence and submit a detailed investment proposal. The proposal will include specifics of the transaction, overview of issuers activities and strategy, company shareholders and lenders, and any other information requested by the IC.


If approved, the investment manager will finalise negotiations and execute the legal documentation, which may include a variety of social and financial covenants and reporting requirements.

Monitoring and Reporting

As agreed upon during execution, the issuer must provide the ALCB Fund with reports on a regular  basis. The Fund Manager will monitor this information to ensure compliance with the covenants and terms and conditions of the agreement.