CASE STUDY
African Frontier Capital Green Bond
CATEGORY
Demand
Capital market tool
Anchoring; Guarantees
Geography
Sub-Saharan Africa
LISTING EXCHANGE
London Stock Exchange's International Securities Market
SECTOR
Renewable Energy
DFI / DONOR INTERVENTION
Green Guarantee Company, funded by MOBILIST; NSIA; Norfund; Green Climate Fund
TRANSACTION SIZE
USD 50 million
TRANSACTION YEAR
2026
Structure and Capital Market Tool
In June 2026, AFC listed a USD 50 million green bond on the London Stock Exchange's (LSE) International Securities Market. The proceeds enabled d.light, a social enterprise offering pay-as-you-go financing for solar products, to expand its receivables securitisation platform, which reached USD 1 billion in cumulative purchasing capacity and is expected to broaden clean energy access for around 4.3 million people across Sub-Saharan Africa.
The AFC green bond was anchored by the Green Guarantee Company (GGC), which provided a guarantee in support of the listing. The GGC is funded by the Green Climate Fund, the UK government's MOBILIST programme, the Nigeria Sovereign Investment Authority (NSIA) and Norfund. It guarantees green bonds issued and listed on the LSE, as well as green loans in the private credit market.
Background and Market Context
African Frontier Capital (AFC) is an impact-investing group providing finance and support for sustainable development in Sub-Saharan Africa. AFC focuses on pay-as-you-go (PAYGo) off-grid solar assets, a financing model that allows households to access solar energy through small payments over time, rather than large upfront purchasing costs.
Development Impact
By raising sub-investment-grade climate issuers to a rating institutional investors can hold, the guarantee acts as a demand-side intervention, unlocking mainstream interest in developing market climate finance that would otherwise remain inaccessible.