Launched to catalyze the growth of corporate bond markets across Africa, the ALCB Fund channels long-term financing in local currencies to institutions whose operations have a wide social and economic impact.

Its operating model is designed to anchor bond issuances and attract private capital, thereby fortifying Africa’s financial infrastructure and supporting sustainable development.

According to Brock Hoback, the fund lead at ALCB, the fresh USD 45 million injection “will considerably bolster our ability to back corporate bond issuances in local currencies across Africa, helping issuers access long-term finance while reducing exposure to foreign exchange risk.”

FMO’s Angelica Ortiz-de Haas affirmed that the institution remains steadfast in its mission to expand local capital markets in Africa, citing its role in macroeconomic resilience and in financing enterprises that stimulate inclusive growth.

She noted that this marks FMO’s third investment in the ALCB Fund, a signal of its enduring trust in the vehicle’s catalytic potential.

For FMO IM, this represents its inaugural investment in the ALCB Fund.

Nic Wessemius, manager of the investment arm, said the investment aligns with their philosophy that financial returns and development impact can coexist.

He expressed eagerness to mobilise institutional investors alongside FMO to fuel inclusive economic expansion across Africa.

This latest financing builds on prior support from FMO, including a USD 10 million loan in 2017 and a USD 20 million facility in 2024.

The new facility is structured over seven years, with amortisation beginning after four years and a three-year availability window.

Half of the funds committed are earmarked for deployment in Africa’s Least Developed Countries, consistent with both FMO’s and ALCB’s impact mandates.

Since its inception in 2012 (through a seed initiative by KfW on behalf of the German Federal Ministry for Economic Cooperation and Development), the ALCB Fund has supported issuances in many African markets and mobilised billions in private co‐investment.

Analysts view this funding round as a significant step in bridging the gap between development finance and private institutional capital, thereby strengthening local currency finance options and adding depth to Africa’s capital markets.