Quick Facts

Countries:
Where the impacts of the investment may be experienced.
  • Africa
Banks:
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
  • Netherlands Development Finance Company (FMO)
Status: Active
Bank Risk Rating: B
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Board Decision Date: 2017-03-10
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower or Client: African Local Currency Bond Fund
The holder of the loan, grant, or other investment.
Sectors:
The service or industry focus of the investment. A project can have several sectors.
  • Finance
Investment Type(s): Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD): $ 10.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Loan Amount (USD): $ 10.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.

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Primary Source

Original disclosure @ FMO website
Updated in EWS: 2017-11-09
ALCB FUND
FMO-52286

Project Description
FMO partners with the ALCB Fund to stimulate longer term local currency financing for microfinance institutions and other non-sovereigns in Africa, to help build capital markets on the African continent and to stimulate investment in the bond issuances by local institutional investors. Local currency bond issuers minimize the exchange rate risk associated with USD funding usually secured from international investors. Building local capital markets will increase the accessibility and affordability of local currency finance, amongst others by helping increase the amount of investment opportunities in rated bond instruments for local institutional investors. The ecosystem of local capital market service providers benefits from increased deal flow that results from the Fund's activities. The innovative approach this Fund brings to increasing access to local currency funding for financial inclusion and broader development targets, working with partners such as KFW, fits with FMO's Strategy. At the same time, FMO contributes to SDG 1 "No Poverty" and SDG8 "Decent Work and Economic Growth" through this investment. The innovative approach this Fund brings to increasing access to local currency funding for financial inclusion and broader development targets, working with partners such as KFW, fits with FMO's Strategy. At the same time, FMO contributes to SDG 1 "No Poverty" and SDG8 "Decent Work and Economic Growth" through this investment.
Investment Description
Contact Information
+27 11 507 2500 joburg-office@fmo.nl Regent Place, 2nd Floor Cradock Ave, Rosebank 2196 Johannesburg South Africa
Bank Documents