The Stock Exchange of Mauritius lists the first Pan-African Sovereign Bond ETF

Sep 18, 2018 | Stock Exchange of Mauritius

The Stock Exchange of Mauritius (SEM) listed today, 18th September 2018, the first Pan-African Sovereign Bond Exchange Traded Fund (ETF), namely the African Domestic Bond Fund (ADBF).

ADBF, which is managed by MCB Investment Management Co. Ltd, is a USD-denominated ETF, structured as an open-ended Collective Investment Scheme that seeks to replicate the AfDB/AFMI” Bloomberg African Bond Index 25% Capped, an index launched in December 2014 by the African Development Bank (AfBD).

The ETF invests in African currency denominated debt obligations issued or guaranteed by an African Government, and will initially comprise debt obligations from South Africa, Egypt, Nigeria, Kenya, Namibia, Botswana, Ghana and Zambia.

ADBF is the result of a partnership between the AfDB, which has committed a total investment of USD 25 million to the fund, and MCB Investment Management Co. Ltd, a subsidiary of MCB Capital Markets, with the aim of promoting the development of local financial markets throughout the African continent.

ADBF constitutes a new product offering which provides investors with a broad exposure to African sovereign debt securities. The listing of ADBF on SEM confirms the attractiveness of the Exchange as a multi-currency (USD, Euro, GBP, ZAR and MUR) capital-raising, listing and trading platform for African issuers.

This listing is also in line with SEM's internationalisation strategy and its multi-asset class focus. Stefan Luis Nalletamby, Director of African Development Bank Group: "The launch of ADBF shows the African Development Bank’s commitment to supporting innovative solutions that will render capital markets more at:tractive to both African domestic and international investors.

This fund is part of the Bank’s effort to help catalyse and mobilise African domestic resources through our domestic capital markets in order to further strengthen Africa‘s financial sustainability. We are extremely happy to see the enthusiasm and support we are receiving from institutional and retail investors." Read more on the full press release.