Together as Fund Managers, Lion’s Head and United Capital will offer unrivaled experience in African debt capital markets with substantive coverage across the continent.
The ALCB Fund’s mission is to support local African banks, financial institutions, agribusiness, and renewable energy companies to issue bonds and similar instruments in local currency. The Fund aims to improve and diversify access to long term funding in domestic capital markets for the benefit of Micro, Small and Medium-sized Enterprises (MSMEs).
With an initial funding of USD 50 million, Lion’s Head and United Capital Asset Management will work together to grow the fund beyond USD100 million in the medium term.
The fund is expected to channel investment into highly developmental sectors with a high impact on growth and rural communities. It will also support local financial institutions by providing financial services for agriculture, education, housing and renewable energy and energy efficiency. Products in scope include local currency bonds (core product), listed bonds, private placements and local currency club deals in countries where bonds are not possible.
CRITERIA FOR PARTICIPATION
At the moment, the fund is available to majority African countries (except South Africa) with expansion plans to all African countries. The fund is targeted at non-sovereign issuers who are issuing a bond for the first time or conducting an innovative transaction in a local context. Proceeds of bond issuance must be used in highly developmental sectors. Most of the African currencies will be accepted for Bonds and similar instrument’s issuances. The ultimate beneficiaries of the funds are micro, small and medium enterprises (MSMEs) and lower income households. The fund will also work with local issuers, investors and intermediaries to bring deals to market.
The Fund currently has nine investments in six countries.