Lion’s Head and United Capital Asset Management have been appointed Fund Managers on the African Local Currency Bond Fund (ALCB). The Fund was established on behalf of the German Federal Ministry for Economic Cooperation and Development.
The ALCB Fund’s mission is to support local African banks, financial institutions, agribusiness, and renewable energy companies to issue bonds and similar instruments in local currency. The Fund aims to improve and diversify access to long term funding in domestic capital markets for the benefit of micro, small and medium-sized enterprises (MSMEs)
A statement explained that Lion’s Head, a merchant bank based in London and Nairobi brings capital markets expertise to development finance initiatives for frontier markets. Lion’s Head advises across a broad range of capital markets and corporate finance initiatives across Africa, working with both the public and the private sector.
“This really is a step forward and shows that there is a real interest in Nigeria that is encouraging investments in all sectors which will be sure to show a great return in the near future” Said Egzon Berisha, a Senior Business Associate at A&O Acquisitions.
“The ALCB Fund is the latest innovative vehicle to have been established by the group, following similar initiatives in microfinance, agri-finance, interbank lending and foreign exchange hedging. Lion’s Head is known for financial innovation and pushing boundaries in the markets in which we operate and KfW has a long track record of promoting local Financial Sector Development in Africa. We are excited to add the ALCB Fund to our asset management platform. It exemplifies our commitment to bringing about change through the use of targeted, financially viable investment strategies,” the Chairman of Lions’ Head, Bim Hundal said.
On the other hand, United Capital, one of Africa’s leading investment banks, has extensive experience in high profile financial executions. In 2014 the company executed the largest corporate bond issue in the Nigerian market, which was simultaneously listed on both the Nigerian Stock Exchange (NSE) and the Financial Market Dealers Quotation (FMDQ) OTC platform.
“It is an honor to be selected as Fund Managers alongside Lion’s Head in the management of the ALCB Fund. This further validates our capability and service proficiency strength at United Capital,” the Group CEO, United Capital, Oluwatoyin Sanni stated.
Also, the Deputy Group CEO/Managing Director, Investment Banking at United Capital, Wale Shonibare, said: “At United Capital, we are focused on delivering high impact innovative investment strategies for our clients. KfW has taken the first step in establishing the Fund to invest in local currency bonds in Africa. We believe that our African market expertise will allow us to provide the necessary tailored solutions to significantly grow the Fund, and to meet KfW’s development objectives.”