On Monday, the African Development Bank (ADB) is going to invest $ 25 million on the stock exchange launch of the African Domestic Bond Fund
It is the first African public debt issuance fund with a stock exchange quote. In a statement, the Bank based in Abidjan, the economic capital of Côte d'Ivoire, announces the launch of the "first Multi-jurisdictional Fund for publicly traded public debt", for which it will contribute to with an initial investment of $ 25 million (EUR 21.5 million).
The African Domestic Bond Fund (ADBF) will be listed in the stock exchange of the Mauricies Islands and will start to be transactioned on Tuesday, September 18.
The Fund will monitor the performance of the African Bond Index and "will be a major source of funding for African governments, increase the liquidity of local markets and create benchmarks for investors," reads the note posted on the ADB website.
ADB's investment comes as a result of the creation of the African Financial Markets Initiative in 2008, to promote the national debt market in African countries through the strengthening of commercial infrastructures and investment in debt issued locally.