Alios Finance Cameroon targets full bond subscription with $12 million anchor investment

Alios Finance Cameroon, a major local player in vehicle and equipment financing controlled by Ivorian businessman Serge-Aimé Bilé, could secure more than half of its CFA13 billion ($22.5 million) bond offering through a planned investment by the International Finance Corporation (IFC), a move that is expected to strengthen investor confidence and improve the likelihood of a fully subscribed issuance.

The IFC is considering subscribing up to $12 million (CFA6.9 billion) in the bond currently being marketed on the Central African Economic and Monetary Community (CEMAC) regional capital market. If approved, the commitment would account for nearly 53% of the total amount Alios Finance is seeking to raise.

The proposed investment remains subject to approval by the IFC’s Board of Directors, and the institution has not disclosed which tranche it intends to participate in.

IFC’s backing could reshape demand dynamics

Details of the potential investment were disclosed in the offering document presented to investors on July 29, 2026, in Douala. The subscription window runs through August 7 and covers 1.3 million bonds priced at CFA10,000 each.

Should the IFC proceed, Alios Finance would need to raise only about CFA6.1 billion ($10.72 million) from other investors to complete the transaction.

Beyond providing capital, the IFC’s participation is expected to position it as an anchor investor, potentially boosting confidence among institutional and retail participants. However, the institution’s involvement does not constitute a repayment guarantee or risk protection for other bondholders. Instead, it reflects the IFC’s broader strategy of supporting local-currency financing and deepening regional capital markets.

According to Ange Claver Kouassi, IFC’s Country Manager for Cameroon and the Central African Republic, the company’s leasing model offers businesses a viable alternative to traditional bank loans, enabling firms to finance productive assets with repayment structures aligned to their cash flows.

In a region where small and medium-sized enterprises continue to face constraints in accessing medium- and long-term funding, the IFC also aims to help mobilize CFA franc liquidity for private-sector growth.

Higher yields signal push to attract investors

The bond issuance is structured in two tranches. A three-year tranche offers a gross annual coupon of 6.6%, while a five-year tranche carries a yield of 7.20%. Both rates are higher than those offered in the company’s 2025 issuance, where investors received 6% and 7% respectively.

The increase, amounting to 60 basis points for the three-year notes and 20 basis points for the five-year—raises funding costs for the issuer but is designed to enhance investor appeal in a competitive market environment.

Ernest Pouhe, Chief Executive Officer of Attijari Securities Central Africa, the transaction’s lead arranger, noted that the regional capital market is increasingly capable of mobilizing significant funding for established private-sector issuers.

Funding strategy targets sustained growth

Alios Finance returned to the market one year after raising CFA9 billion ($15.82 million) of its CFA10 billion ($17.58 million) target in its previous bond offering, achieving a subscription rate of about 90%.

The IFC’s potential participation could help the company fully meet its latest fundraising objective, although the final outcome will depend on both board approval and investor demand before the subscription window closes.

According to Chief Executive Officer Olivier Baman, the issuance forms part of a broader funding strategy aimed at raising between CFA15 billion ($26.37 million) and CFA22 billion ($38.67 million) annually to support business growth of around 10%.

Proceeds from the bond will be used to finance the acquisition of machinery and equipment for corporate clients, particularly in the trade, industrial, and construction sectors, reinforcing Alios Finance’s role in supporting productive investment across Cameroon’s economy.