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AfDB updates its African Bond index

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AfDB updates its African Bond index

The African Development Bank (AfDB) has updated its composite index available to Bloomberg Professional service subscribers via BADB Index. In a statement, the AfDB said that the index, which is enriched with two sub-indices (BADBC and BADBX), was released in January 2018 to improve African debt market liquidity and transparency. According to the statement: “The new {BADBC Index} is the capped version of the African Bond Index (ABABI) with a maximum exposure of 25% per country, while the {BADBX Index} excludes South Africa.

The enhancement of the composite index family will provide investors with more diversified baskets, thus reducing their exposure to one major country.” The AfDB, through the African Financial Markets Initiative (AFMI), launched its AfDB/ AFMI Bloomberg African Bond Index (ABABI) in February 2015. Calculated by Bloomberg Indices, the composite index is comprised of the South Africa, Egypt, Nigeria, Kenya, Botswana and Namibia local currency sovereign indices. The AFMI works to deepen the continent’s local currency bond markets and strives to create an environment where African countries can access financing at variable terms.

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  1. Pingback: AfDB updates its African Bond index - Naijaray Headline

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