ALCB Fund Invests in Swami Agri’s Debut Bond, First Agricultural Green Bond in WAEMU

The African Local Currency Bond Fund (ALCB Fund), managed by Cygnum Capital, has invested XOF 4 billion (USD 7.0 million) in the XOF 30 billion (USD 52.2 million) debut green bond issued by Swami Agri, one of Senegal’s largest agricultural producers.

The transaction marks Swami Agri’s inaugural capital markets issuance and the first agricultural green bond issued in the UEMOA (West African Economic and Monetary Union) region. It is also a rare example of a corporate issuer using the local bond market to finance investment in renewable energy and agricultural infrastructure, with proceeds directed towards solar panels and cold-storage units. According to Hitesh Gorasia, Chief Executive Officer and Managing Director of Swami Agri, the issuance gives the company longer-term local currency funding for its next phase of growth.

The five-year, XOF-denominated bond benefits from a first-demand guarantee issued by FAGACE (African Guarantee and Economic Cooperation Fund), which provides a 100% guarantee covering both principal and interest.

The investment programme targets a 70–90% renewable energy share across storage and production operations, a 20–30% reduction in CO₂ emissions, a reduction of at least 50% in post-harvest losses, and the creation of at least 700 direct jobs, while supporting Senegal’s path towards self-sufficiency in potatoes and onions. Fola Pedro, Transaction Lead at the ALCB Fund, said the bond will add 62,500 tonnes of solar-powered cold-storage capacity and 16.7 MW of solar generation, expanding the agricultural value chain’s capacity to store and market produce.

For IMPAXIS Securities, which arranged and led the transaction, the bond is evidence that the regional capital market can provide long-term local currency financing for a priority sector such as agriculture, while supporting private sector growth and food security, according to Managing Director and Board Member Ababacar Diaw. FAGACE sees the guarantee as an example of how de-risking instruments can strengthen investor confidence and drive private sector development, and Secretary General Dr Basile Tchakounte added that the institution looks forward to supporting more transactions of this kind.