African Development Bank Expands its African Bond Index

The African Development Bank (AfDB) through the African Financial Markets Initiative (AFMI) launched its AfDB/ AFMISM Bloomberg® African Bond Index (ABABI) in February 2015.

Calculated by Bloomberg Indices, the composite index is currently comprised of the Bloomberg South Africa, Egypt, Nigeria and Kenya local currency sovereign indices and will be joined from October 2015 by Botswana and Namibia.

"As more African countries are increasingly looking to domestic capital markets to source much-needed financing for economic development, we are delighted to welcome Botswana and Namibia to the index and expect to include more countries to it as soon as reliable pricing information is made available,” said Stefan Nalletamby, director of the AfDB’s Financial Sector Development Department.

The expanded index will now include the six most liquid sovereign bond markets in Africa and three sub-indices for different maturity ranges. To be included in the index, a security must have at least one year remaining to maturity and withstand price stability tests.

The AFMI works to deepen the continent’s local currency bond markets and also strives to create an environment where African countries can access financing at variable terms.

By providing transparent and credible benchmark indices, the AfDB/AFMISM Bloomberg® African Bond Index provides investors with a tool with which to measure and track the performance of Africa’s bond markets.