African Local Currency Bond Guarantee Programme (ALCBGP)

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The mission of the ALCB Fund is to establish and grow local currency corporate bond markets as a viable source of financing in Africa. The main activity of the Fund is to make investments in local currency bonds issued by non-government entities in African countries. In this regard, the Fund acts as an anchor investor and aims to mobilize local investors to invest alongside the Fund. The Fund's ultimate beneficiaries are micro, small and medium-sized enterprises (MSMEs) and low-income households who benefit from the issuer's enhanced or expanded ability to provide or make direct investments in financial services for housing, education, infrastructure, agriculture, renewable energy/energy efficiency and health. The main development challenge facing African bond markets is to improve deal flow and capital market experience of issuers, investors and intermediaries. To bring new issues to market, the ALCB Fund acts as an anchor investor in first-time or innovative bond issuances by local companies. The fund also offers technical support to cover, for example, the costs of legal advice, auditing and rating (with the aim of meeting regulatory standards) in the context of a bond issue. The issuers supported are usually financial institutions, companies in the real economy or special purpose vehicles for structured finance. The mission of the ALCB fund follows the G20 action plan to support the development of local currency bond markets, which was adopted by the group in 2011 under the French presidency.