MOBILIST hosts launch of the iBoxx LSF USD African Sovereigns Index
28 June, London. The Liquidity and Sustainability Facility (LSF) is pleased to announce its collaboration with S&P Dow Jones Indices (S&P DJI) on the development and launch of the iBoxx LSF USD African Sovereigns Index. The index currently tracks the performance of a group of 17 African Sovereign issuers that reflect the universe of Eurobonds that the LSF accepts as collateral in the framework of repo transactions.
LSF is licensing the iBoxx LSF USD African Sovereigns Index to use as a benchmark for its repo facility. The index, which is owned and managed by S&P DJI, can be replicated to create index-based products such as exchange-traded funds.
The index Is launched today at an event hosted by MOBILIST, a UK government programme focused on mobilising private investment in emerging markets and developing economies through public markets.
“Deepening capital markets, by building infrastructure that facilitates the inclusion of developing economies in capital market instruments is crucial to mobilise cheaper and longer term resources.” Vera Songwe, Founder and Chairwoman of the LSF. “Inclusion in indices is an important step towards increased profile and access to a wider range of investors for African Sovereign issuers and we hope for many other emerging markets as we expand.”
S&P Dow Jones Indices is pleased to offer an index that provides broad coverage of the African Sovereign bond universe,” said Randolf Tantzscher, Fixed Income Product Management Team Lead at S&P DJI. “The specific methodology developed through the collaboration with LSF can offer good representation and inclusion of African nations with access to international markets.”
Randolf Tantzscher, Fixed Income Product Management Team Lead at S&P DJI.
“We have been a long-standing champion of LSF”, said British Robinson, Prosper Africa Coordinator. “The iBoxx LSF USD African Sovereigns Index will help investors benchmark the true risks and rewards from investing in a diversified portfolio of African hard currency sovereign debt. Addressing these information asymmetries will inevitably drive investment into Africa. Helping develop a more efficient and transparent investment ecosystem in Africa is a key objective of Prosper Africa and we are proud to support this initiative.
British Robinson, Prosper Africa Coordinator.
“Market indices play a significant role in asset allocation. The adoption of new inclusive indices can allow investors to track the performance of a wider range of assets and support allocation to emerging markets and developing economies where it is most needed,” said Louise Walker, Head of Private Sector and Capital Markets Department, Foreign, Commonwealth and Development Office. “Supporting the liquidity of African bond markets is essential for market development and improving the attractiveness and viability of the asset class.”
Louise Walker, Head of Private Sector and Capital Markets Department, Foreign, Commonwealth and Development Office.
“This is a new development for the LSF that is fully aligned with its core missions,” said David Escoffier, CEO of the LSF Secretariat. “We need instruments such as indices that bring additional transparency and liquidity to the market in order to crowd in more investors and effectively mobilise private capital to support the sustainable development of Africa. It is a privilege to be supported in that endeavour by such leading international partners.”
David Escoffier, CEO of the LSF Secretariat
The LSF was designed with the dual objective of supporting the liquidity of African Sovereign Eurobonds on the repo market and incentivizing SDG-related investments such as GSS bonds on the African continent.
More information related to the iBoxx LSF USD African Sovereigns Index can be found on iBoxx Fixed Income Indices | S&P Global (spglobal.com)
