Key Takeaways
- • The African Local Currency Bond Fund (ALCB Fund), managed by Cygnum Capital, invested XOF 4 billion ($7 million) in the XOF 30 billion ($52.2 million) debut green bond issued by Swami Agri, one of Senegal's largest agricultural producers.
- • The five-year, XOF-denominated bond is the first agricultural green bond issued in the West African Economic and Monetary Union (UEMOA) and marks Swami Agri's inaugural capital markets issuance.
- • The bond carries a first-demand guarantee from the African Guarantee and Economic Cooperation Fund, and proceeds will fund solar panels and cold-storage units.
- • The programme targets a 70–90% renewable energy share in storage and production, a 20–30% cut in CO₂ emissions, at least a 50% reduction in post-harvest losses, and at least 700 direct jobs.
Summary
The ALCB Fund, managed by Cygnum Capital, has invested XOF 4 billion ($7 million) in a XOF 30 billion ($52.2 million) debut green bond issued by Swami Agri, one of Senegal's largest agricultural producers, according to Africa Private Equity News. The transaction is Swami Agri's first capital markets issuance and the first agricultural green bond issued in the UEMOA region.
The five-year, XOF-denominated bond benefits from a first-demand guarantee issued by the African Guarantee and Economic Cooperation Fund. Proceeds are directed toward solar panels and cold-storage units. Fola Pedro, transaction lead for the ALCB Fund at Cygnum Capital, said the bond will add 62,500 tonnes of solar-powered cold-storage capacity and 16.7 MW of solar generation, helping reduce post-harvest losses and expand the value chain's storage and marketing capacity.
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. The project also supports Senegal's path toward self-sufficiency in potatoes and onions.
Hitesh Gorasia, chief executive officer and managing director of Swami Agri, said the issuance allows the company to finance its next phase of growth with longer-term local currency funding, and that the new solar plants and cold-storage capacity will reduce emissions and post-harvest losses.
The five-year, XOF-denominated bond benefits from a first-demand guarantee issued by the African Guarantee and Economic Cooperation Fund. Proceeds are directed toward solar panels and cold-storage units. Fola Pedro, transaction lead for the ALCB Fund at Cygnum Capital, said the bond will add 62,500 tonnes of solar-powered cold-storage capacity and 16.7 MW of solar generation, helping reduce post-harvest losses and expand the value chain's storage and marketing capacity.
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. The project also supports Senegal's path toward self-sufficiency in potatoes and onions.
Hitesh Gorasia, chief executive officer and managing director of Swami Agri, said the issuance allows the company to finance its next phase of growth with longer-term local currency funding, and that the new solar plants and cold-storage capacity will reduce emissions and post-harvest losses.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.