Sovereign Index to Bring Transparency to African Bonds
- Gauge tracks bond performance of South Africa, Nigeria, others
- US agencies, banks including Citigroup are helping the effort
Vera Songwe
Photographer: Arun Sankar/AFP/Getty ImagesThis article is for subscribers only.
An effort by government agencies and large global banks to reduce borrowing costs for African countries has received a boost from a new index that helps investors assess relevant bond prices, executives and officials involved said.
The iBoxx LSF USD African Sovereigns Index, launched in late-June, tracks performance of African sovereign Eurobonds that a broader program called the Liquidity Sustainability Facility accepts as collateral. The LSF’s aim is to enhance the short-term financing market in Africa, which is badly underdeveloped, by offering more transparency with daily pricing.