MOBILIST provides seed funding to launch a new L&G African Government Bond ETF
MOBILIST has supported the launch of a new Exchange Traded Fund (ETF) designed to broaden institutional investment in African sovereign debt markets. Developed with Legal & General Asset Management (L&G), the fund is the latest step in MOBILIST’s effort to build the market infrastructure needed to attract larger pools of private capital into African economies. This is the first time a UK government programme has seeded an ETF. By helping the fund launch at a credible initial size, MOBILIST is demonstrating how development finance can work with major asset managers and public markets to create investable products capable of mobilising capital at scale.
The investment forms part of MOBILIST’s wider market-building strategy for African sovereign debt. In 2024, MOBILIST supported the launch of the iBoxx LSF USD African Sovereigns Index in response to a simple challenge: institutional investors typically allocate capital through recognised indices and benchmarks. The aim was to create the foundations for new investment products capable of attracting a broader range of investors to African sovereign debt.
The launch of the L&G LSF African Government Bond (USD) UCITS ETF turns that benchmark into an investable public-market product. Listed on the London Stock Exchange, the ETF provides investors with a transparent and diversified route to access African sovereign Eurobonds through a structure they already use to allocate capital. This represents an important step in turning MOBILIST’s original ambition into reality.
Institutional investors typically allocate capital through recognised indices and benchmarks. The ETF tracks the iBoxx LSF USD African Sovereigns Index, which provides exposure to USD-denominated sovereign bonds issued by countries eligible under the Liquidity and Sustainability Facility (LSF). The LSF was established to improve liquidity in African sovereign bond markets and help address the additional borrowing costs associated with illiquid secondary markets. MOBILIST supported the index’s launch in 2024.
MOBILIST’s role is catalytic. By helping the ETF launch at a credible scale alongside one of the UK’s largest asset managers, the programme is helping establish the track record and liquidity needed to attract follow-on private investment. Over time, a broader investor base can contribute to more active secondary markets, improved price transparency and lower liquidity premia for African sovereign issuers. If successful, the model could be replicated across other emerging-market asset classes.
Lee Collins, Head of Index Fixed Income, L&G: “We are delighted to launch the L&G LSF Africa Government Bond ETF, the first of its kind available in Europe. L&G is recognised for its expertise in managing EMDE assets and with this launch, we further expand the product suite in the asset class. This ETF offers investors the opportunity to increase their exposure to the region, which in a global portfolio is often underrepresented. It’s been a pleasure to work with the LSF and MOBILIST to bring this product to market and we thank them for their collaboration.”
Dr Vera Songwe, Founder & Chair of the LSF: “We are delighted to see the launch of the first ETF based on the iBoxx LSF USD African Sovereigns index. It illustrates the increasing appetite of the private sector for African securities. It is a privilege to work with leading partners to build momentum and attract a wider range of investors to Africa’s capital markets. I would like to express my gratitude to all partners and in particular, Afreximbank, whose support for the LSF’s mission and objectives since inception has been instrumental in making this milestone possible and driving the international growth of African financial markets.”