The African Local Currency Bond Fund has invested $3 million in ACEP Cameroun’s first bond issue on BVMAC, marking a crucial development for the microfinance sector. The bond aims to raise CFA5 billion to enhance ACEP Cameroun’s credit capabilities and will support its 2025-2027 strategic plan. ACEP Cameroun is also planning a second bond issue in 2025, targeting CFA10 billion for inclusive financing initiatives.
The African Local Currency Bond (ALCB) Fund has made a pivotal investment of $3 million (CFA1.9 billion) in the inaugural bond issue by the Agency for Private Enterprise Credit in Cameroon (ACEP Cameroun) on the regional stock exchange (BVMAC). This investment signifies a notable advancement for the microfinance sector, bolstering ACEP Cameroun’s initial fundraising efforts within the unified financial landscape of the Cemac countries.
The bond issue aimed to raise CFA5 billion to enhance ACEP Cameroun’s ability to provide loans. This represents a landmark moment, being the first fundraising venture by a microfinance institution on the regional stock exchange since its consolidation. The ALCB Fund’s involvement was crucial for the successful outcome of this operation.
Michèle Atangana, CEO of Upline Securities Central Africa, commented on the achievement, stating, “This bond issue is a first since the merger of regional stock markets, thanks to the involvement of an external investor, the ALCB Fund.”
Hack-Yann Akindele, CEO of ACEP Cameroun, emphasized the significance of this new partnership, stating, “We are delighted to count the ALCB Fund among our trusted partners. This transaction helps us diversify our funding base and extend the duration of our commitments.”
The bond issue was officially launched on January 9, with subscriptions running from December 30, 2024, to January 30, 2025. It features a 7% interest rate and a three-year maturity, with the proceeds aimed at funding ACEP Cameroun’s strategic objectives for 2025-2027, reducing reliance on international donors.
Looking forward, ACEP Cameroun intends to initiate a second bond issue on BVMAC in 2025, aiming to raise CFA10 billion. This future bond will introduce the first Inclusive Bonds in Central Africa to improve financial access for vulnerable entrepreneurial groups, specifically micro and informal sector businesses. These bonds will support local microfinance institutions like ACEP Cameroun in providing loans, enhanced through guarantees.
The ALCB Fund’s investment in ACEP Cameroun marks a significant development in the microfinance sector, enabling the institution to diversify its funding and expand its loan offerings. This milestone not only highlights the role of external investors in regional markets but also sets the stage for future initiatives aimed at enhancing financial inclusivity among vulnerable groups in Central Africa.
Original Source: www.businessincameroon.com
