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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.
Swami Agri has launched its first bond in the capital markets, marking the region’s first agricultural green bond. The five-year, XOF-denominated bond is supported by a guarantee from the African Guarantee and Economic Cooperation Fund (FAGACE). IMPAXIS Securities managed the deal.
“This issuance allows Swami Agri to finance its next phase of growth with longer-term local currency funding. The new solar plants and increased cold-storage capacity will reduce our emissions and our post-harvest losses, and take Senegal closer to self-sufficiency in potatoes and onions. We are proud to be the first agricultural issuer to bring a green bond to the regional market, and grateful to the ALCB Fund for supporting the transaction,” said Hitesh Gorasia, Chief Executive Officer and Managing Director, Swami Agri.
Swami Agri focuses on supplying healthy and affordable food while addressing the challenges faced by industrial farmers through investments in precision technology.
The company aims to ensure a reliable food supply in an environmentally sustainable manner, primarily producing potatoes and onions. The company prioritises local employment and employs modern agricultural practices, including advanced irrigation systems and machinery.
With a cultivated land area of over 3,500 hectares, Swami Agri’s production includes approximately 90,000 tons of potatoes, 25,000 tons of onions, and 5,000 tons of bananas.
Additionally, the company features high-performance cold storage facilities and pumping stations to support its operations. The arranger said the deal shows what the regional capital market can do for agriculture.
The ALCB Fund’s transaction lead said the deal stood out because of the first-time issuer, the clear use of proceeds and the market first.
“For the ALCB Fund, the strength of this transaction lies in the combination of a first-time corporate issuer, a clear use of proceeds, and the first agricultural green bond in the UEMOA market. 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 giving the agricultural value chain more capacity to store and market produce. It is an important milestone for Swami Agri and a strong example of what can be financed through the regional bond market. We are pleased to have supported the transaction,” said Fola Pedro, Transaction Lead, ALCB Fund, Cygnum Capital.
Started as a small advisory firm Cygnum Capital has evolved into a significant global player in the investment management sector.
The company has expanded its investment banking activities internationally, advising on unique transactions across various sectors, including critical minerals, renewable energy, financial services, infrastructure, power, healthcare, and real estate.
The Senegal’s company has allocated funds for solar panels and cold-storage units, aiming to enhance its operations with an addition of 16.7 MW of solar generation and 62,500 tonnes of solar-powered cold-storage capacity.
“Agriculture is a priority sector for Senegal, and this transaction shows how the regional capital market can provide long-term local currency financing for its development. Swami Agri’s issuance combines agricultural investment with a clear environmental purpose, financing solar energy and cold storage to reduce emissions and post-harvest losses. We are proud to have arranged and led this transaction, which demonstrates the role of the capital market in financing private sector growth and supporting food security,” said Ababacar Diaw, Managing Director and Board Member, IMPAXIS Securities.
