(Business in Cameroon) – The African Local Currency Bond (ALCB) Fund has invested $3 million (CFA1.9 billion at current exchange rates) in a recent bond issue launched by the Agency for Private Enterprise Credit in Cameroon (ACEP Cameroun) on the regional stock exchange (BVMAC). This investment marks a significant step for the microfinance sector, with ALCB contributing to the success of ACEP Cameroun’s first fundraising on the unified financial market of the Cemac countries.
The bond issue aimed to raise CFA5 billion to strengthen ACEP Cameroun’s capacity to provide credit. A key milestone, this was the first-ever fund-raising by a microfinance institution on this market since its consolidation. The participation of the Luxembourg-based ALCB Fund helped ensure the success of the operation.
Michèle Atangana, CEO of Upline Securities Central Africa (USCA), expressed excitement about the milestone, saying, “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, highlighted the value of the partnership, adding, “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. We are now in a better position to expand our loan portfolio and offer more financing to micro-entrepreneurs in Cameroon.”
The bond issue was officially launched on January 9 and subscriptions, which opened on December 30, 2024, closed on January 30, 2025. The bonds offer a 7% interest rate with a three-year maturity. ACEP Cameroun aims to use the funds to finance its 2025-2027 strategic plan, reducing the institution’s reliance on international donors.
Looking ahead, ACEP Cameroun is planning to return to BVMAC later in 2025 for a second bond issue, targeting CFA10 billion. This time, it will be part of the first-ever Inclusive Bonds in Central Africa. A project initiated by FinAfrique, the Inclusive Bonds initiative seeks to provide better financial access for vulnerable entrepreneurial groups, such as micro and informal sector businesses. These funds will be allocated to local microfinance institutions like ACEP Cameroun to provide loans to small businesses, backed by guarantees.
