The African Local Currency Bond Fund (ALCB Fund) has strengthened its support for South African small and medium enterprises with a further ZAR 50 million investment in UsPlus Limited. The commitment takes the form of a four-year senior unsecured social bond issued under UsPlus' ZAR 1 billion Note Programme. The notes are listed on the Sustainability segment of the Interest Rate Market of the JSE Limited, underscoring the growing role of thematic debt in the region.
Follow-On Investment and Market Milestone
This transaction marks the ALCB Fund's second investment in UsPlus, following an initial ZAR 40 million commitment made in 2024. That earlier support helped UsPlus enter the public bond market as a debut thematic issuer. The new issuance also stands out in South Africa's debt capital markets as one of the earlier corporate social bond transactions to reference ZARONIA, the benchmark replacing JIBAR.
Bond Structure and Benchmark Transition
The new social bond has a tenor of four years and is senior unsecured in structure, providing UsPlus with flexible local currency funding. The notes are issued under UsPlus' existing ZAR 1 billion Note Programme on the JSE Limited. By referencing ZARONIA, the transaction supports South Africa's transition toward the new domestic interest rate benchmark.
Dedicated Use of Proceeds
The bond is classified as a Sustainability Use of Proceeds instrument, meaning the funds will be allocated only to eligible social projects under the UsPlus Social Bond Framework. Independent third-party verification for the framework was provided by IBIS ESG Consulting Africa. UsPlus uses the liquidity to provide invoice discounting, factoring, and purchase order financing so that small businesses can unlock capital tied up in payment cycles.
Executive Views
Brock Hoback, Fund Lead at the ALCB Fund, described the reinvestment as evidence that anchor capital can help create a durable local-currency funding platform. He said the follow-on transaction enables UsPlus to broaden working-capital access for micro, small, and medium enterprises. Hoback added that this supports employment, inclusion, and the continued development of South Africa's thematic bond market.
UsPlus Founder and CEO Leonidas Kirkinis said meaningful social change cannot be achieved by any single actor alone. He stressed that UsPlus has worked since its inception to create networks of good that can positively impact South Africa. Kirkinis added that the larger commitment validates the company's social-finance strategy and its ability to use debt capital markets to expand finance for MSMEs.
Supporting SMEs and Employment
UsPlus specializes in working-capital solutions that target a critical gap for smaller businesses in South Africa. Through invoice discounting, factoring, and purchase order financing, the company helps suppliers manage delayed payments and maintain operations. The additional funding is expected to expand this financing to more enterprises, with direct benefits for cash flow, contract fulfilment, and job retention.
Market Development Context
The repeat investment demonstrates how development finance can anchor local currency issuance and encourage market confidence. It follows the ALCB Fund's initial ZAR 40 million commitment in 2024, which helped UsPlus establish itself as a debut thematic issuer. The transaction reinforces South Africa's position in exploring social bonds as a tool for economic inclusion.
The follow-on investment highlights how targeted institutional participation can catalyze repeat issuance and deepen local currency bond markets. UsPlus's latest social bond links capital markets to measurable economic inclusion for smaller businesses in South Africa. With this additional funding, the partnership between the ALCB Fund and UsPlus is positioned to expand working-capital access and reinforce the role of social bonds in sustainable local finance.