Swami Agri raises $52.2M in first farm green bond for WAEMU market
What's the deal? Senegalese agricultural producer Swami Agri has raised US$50.3M through a five-year green bond to fund solar power and cold storage. The African Local Currency Bond Fund (ALCB FundDealroom has a profile for this one. Try Dealroom →), managed by Cygnum CapitalDealroom has a profile for this one. Try Dealroom →, anchored the issue with US$6.71M.
Why now? It is Swami Agri's first capital-markets issuance and, according to Cygnum Capital, the first agricultural green bond issued in the West African Economic and Monetary Union (WAEMU). IMPAXIS Securities arranged the transaction, which carries a reported 7% annual rate and a first-demand guarantee from the African Guarantee and Economic Cooperation Fund covering principal and interest.
What's the endgame? Proceeds will fund 16.7MW of captive solar generation and five cold-storage facilities holding a combined 62,500 tonnes of produce. Swami Agri cultivates more than 3,500 hectares, producing about 90,000 tonnes of potatoes, 25,000 tonnes of onions, and 5,000 tonnes of bananas each year.
The company is targeting a 50% cut in post-harvest losses, a 20% to 30% reduction in emissions, and a 70% to 90% renewable energy share across its operations. It expects the programme to create at least 700 direct jobs and support Senegal's push for self-sufficiency in potatoes and onions.
What could go wrong? The bond adds repayment obligations over five years, so returns depend on delivery. Swami Agri has not disclosed its current loss rate, making its 50% reduction target hard to assess, and solar equipment brings installation and maintenance costs that will test the savings.
"This issuance allows Swami Agri to finance its next phase of growth with longer-term local currency funding," said Hitesh Gorasia, chief executive officer and managing director of Swami Agri.
The signal: At $52.2 million, the deal is a sizeable test of whether regional capital markets can finance private-sector food and climate infrastructure rather than rely on public debt. "It is an important milestone for Swami Agri and a strong example of what can be financed through the regional bond market," said Fola Pedro, transaction lead for the ALCB Fund.
Read more: businesstechafrica.co.za
Image credit: पानी परयोजना
