The African domestic bond fund is listed on the Botswana Stock Exchange
The African Domestic Bond Fund (ADBF), an exchange-traded fund, was listed in local Pula on the Botswana Stock Exchange (BSE). The listing on September 15, 2022 follows the Fund’s main US dollar listing on the Stock Exchange of Mauritius in 2018. The pula listing will provide investors with an innovative tool to gain exposure to African local currency fixed income securities. .
ADBF is the first multinational fixed income exchange-traded fund in Africa. It was launched by the African Development Bank as part of initiatives to strengthen African economies by reducing their reliance on foreign currency-denominated debt, expanding the range of financing options available and acting as a catalyst for the integration of regional markets.
The Fund tracks the African Development Bank’s Bloomberg African Bond Indices (ABABI), a family of bond indices that tracks 10 countries and represents approximately 90% of the total stock of outstanding African local currency bonds.
ABABI, administered by the Bank and calculated by Bloomberg, was developed to improve liquidity in local capital markets and serve as a benchmark for African local currency investors. The indices also provide a strategic tool to improve the infrastructure of African bond markets.
Stefan Nalletamby, Director of the Financial Sector Development Department at the African Development Bank, said: “This listing on the BSE is a very positive development as the Fund’s status as a local asset will allow institutional investors in Botswana to invest in the Fund as part of their national investment. allowances. This list aligns with our mandate to develop capital markets products in our regional member countries.
The African Domestic Bond Fund offers attractive opportunities from both an investment and development perspective, said Ahmed Attout, Director of the Bank’s Capital Markets Development Division. He said the African Development Bank had not only conceptualized the Fund, but was also investing up to $25 million in it as a sign of commitment to the initiative.
The African Development Bank is working to deepen Africa’s local currency bond markets and create an environment in which African countries can access long-term financing.
Distributed by APO Group for the African Development Bank (AfDB) Group.
Department of Communication and External Relations,
E-mail: [email protected]
Principal Investment Officer, Financial Sector Development Department,
African development bank
About the African Development Bank Group:
The African Development Bank Group is Africa’s premier development finance institution. It comprises three distinct entities: the African Development Bank (AfDB), the African Development Fund (ADF) and the Nigeria Trust Fund (NTF). Present in 41 African countries with an external office in Japan, the Bank contributes to the economic development and social progress of its 54 regional member states. For more information: www.AfDB.org
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