S&P Dow Jones Indices and LSF launch African Sovereign Index
28 June 2024 UK
Image: StudioProX/stock.adobe.com
The Liquidity and Sustainability Facility (LSF) will collaborate with S&P Dow Jones Indices (S&P DJI) on the development and launch of iBoxx LSF USD African Sovereigns Index.
The index, owned and managed by S&P DJI, tracks the performance of African sovereign eurobonds that the LSF accepts as collateral in repo transactions.
The LSF is licensing the iBoxx LSF USD African Sovereigns Index to use as a benchmark for its repo facility. It can also be replicated to create index-based products like ETFs.
Randolf Tantzscher, the leader of the fixed income product management team at S&P DJI, says: “The specific methodology developed through the collaboration with LSF can offer good representation and inclusion of African nations with access to international markets.”
Since COP26 in November 2026, the LSF has been working on improving African Sovereign debt sustainability, as well as the enhancement of liquidity in the market through its participation with African governments and private investors.
According to the LSF, the new index will support the liquidity of African sovereign eurobonds on the repo market and incentivise Sustainable Development Goals (SDG)-related investment, such as green, social and sustainability (GSS) bonds, on the African continent.
Vera Songwe, founder and chairwoman of the LSF, says: “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.
“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.”
The index, owned and managed by S&P DJI, tracks the performance of African sovereign eurobonds that the LSF accepts as collateral in repo transactions.
The LSF is licensing the iBoxx LSF USD African Sovereigns Index to use as a benchmark for its repo facility. It can also be replicated to create index-based products like ETFs.
Randolf Tantzscher, the leader of the fixed income product management team at S&P DJI, says: “The specific methodology developed through the collaboration with LSF can offer good representation and inclusion of African nations with access to international markets.”
Since COP26 in November 2026, the LSF has been working on improving African Sovereign debt sustainability, as well as the enhancement of liquidity in the market through its participation with African governments and private investors.
According to the LSF, the new index will support the liquidity of African sovereign eurobonds on the repo market and incentivise Sustainable Development Goals (SDG)-related investment, such as green, social and sustainability (GSS) bonds, on the African continent.
Vera Songwe, founder and chairwoman of the LSF, says: “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.
“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.”
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