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Project Summary Note - African Local Currency Bond Fund “ALCB FUND”
The African Local Currency Bond Fund (“ALCB Fund”, the “Fund”), initiated in December 2012 by the German Development Bank (KfW) on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ) through paid-in permanent capital of USD 47m (all committed capital) is a private limited liability company domiciled in Mauritius. The objective of the Fund is to facilitate local currency corporate bond market development through (i) anchor investments of up to 30% of new bond issues; (ii) crowd in critical local private and institutional investors; and (iii) technical assistance, via a USD 2.59m ALCB Fund Technical Assistance Facility-“Fund TAF”. The Fund invests throughout African countries and only in primary bond issuances by non-sovereign entities, focusing on high developmental sectors of financial institutions, renewable energy, housing, and agriculture. Since inception, ALCB Fund has made 23 investments of which 3 have matured/been exited; principally in first time or innovative issuances in terms of structure, tenor, local participation or through public listing.