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ALCB Fund S.A. SICAV-RAIF

Customer

ALCBF is an open ended, structured debt fund established in 2012 by KfW acting as anchor investor on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ). Its mission is to support the development of African capital markets by promoting the issuance of corporate bonds. The Fund focuses on tier II financial institutions in Africa and finances mostly MSME and housing portfolios. It is domiciled in Luxembourg and managed by Cygnum Capital, an experienced asset manager based in the United Kingdom.

Funding Objective

The Fund plans to issue a medium-term-note (MTN) series of up to EUR 150m in Frankfurt in 2024/2025, and DEG will participate by investing up to EUR 25m. The notes will have a sustainable use of proceeds (micro/SME/housing or green on-lending purposes).

Reasons for financing

The overall development quality of the transaction is expected to be high, significantly contributing to local income generation, the creation of decent jobs, and market and sector development through the investee companies of the Fund. The transaction strongly supports the following Sustainable Development Goals (SDGs): SDG 1 "No Poverty," SDG 8 "Decent Work and Economic Growth, and SDG 17 "Partnerships for the Goals."

The investment in ALCBF notes allows DEG to support tier II financial institutions in Africa, grow the local capital markets on the continent, and potentially attract private institutional investors by playing an anchoring role for the new MTN series. This investment aligns with DEG’s strategic goals of fostering financial sector development and promoting sustainable economic growth in Africa.

Region Africa (Sub-Sahara)
Country Supraregional
Sectors Financial Sector
Signing Date 04-2024
Funding USD 25 Million
Investment Instrument Debt
Source of Funding DEG's own funds
Environmental & Social Category
Risk categorization on environmental and social impacts:
A = High risk; Investments with significant potential adverse social or environmental impacts that are diverse, irreversible or unprecedented. These impacts cannot be mitigated or remedied or only at significant costs.
B+ = High Medium Risk; Investments with limited potential adverse social or environmental impacts that are site-specific addressed through mitigation measures, but having specific features which can have potential significantly more adverse social or environmental impacts.
B = Low Medium Risk; Investments with limited potential adverse social or environmental impacts that are site-specific and readily addressed through well-known mitigation measures.
C = Low Risk; Investments with minimal or no adverse social or environmental impacts.
FI-A = Financial Institutions High Risk; Financial Institutions with business activities or projects with significant potential adverse social or environmental impacts or risks.
FI-B =Financial Institutions Medium Risk; Financial Institutions with business activities or projects with limited potential adverse social or environmental impacts or risks.
FI-C =Financial Institutions Low Risk; Financial Institutions with business activities or projects with minimal or no adverse social or environmental impacts or risks.

FI-B
General partner’s (GP) name, domiciliation of GP/fund Cygnum Capital Group Limited, United Kingdom / Luxembourg
Website of the customer www.alcbfund.com

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