L&G celebrates the launch of its African Government Bond ETF at the London Stock Exchange
L&G is delighted to open the market at the London Stock Exchange to celebrate the launch of the L&G LSF African Government Bond (USD) UCITS ETF.
The new ETF has been launched with initial co-seeding from the UK Foreign, Commonwealth and Development Office through its MOBILIST programme. This marks the first time that the FCDO has seeded an ETF and brings together a major global asset manager and a development finance programme to create a new route for investors to access African sovereign debt through public markets.
The Fund seeks to track the performance of the iBoxx LSF USD African Sovereigns Index, launched in 2024. The Index includes investment-grade and sub-investment-grade bonds and applies country caps, floors and eligibility rules that seek to manage concentration risk. It focuses on countries defined as eligible by the Liquidity and Sustainability Facility under its framework for secondary-market operations.
The initiative is designed to broaden participation in African sovereign bond markets through a recognised index, a listed investment vehicle and institutional capital. It also supports the LSF’s wider objective of increasing liquidity in African capital markets and mobilising private investment in emerging African economies through public markets. MOBILIST’s participation is intended to support the Fund’s launch at a credible scale and help establish liquidity during its early stages.
“We are pleased to launch the L&G LSF African Government Bond ETF, the first of its kind available in Europe. This ETF offers investors the opportunity to increase their exposure to a region that is often underrepresented in global portfolios. It has been a pleasure to work with the LSF and MOBILIST to bring this product to market, and we thank them for their collaboration.”
Lee Collins
Head of Index Fixed Income at L&G
“We are delighted to see the launch of the first ETF based on the iBoxx LSF USD African Sovereigns index. It illustrates the increasing appetite of the private sector for African securities. It is a privilege to work with leading partners to build momentum and attract a wider range of investors to Africa’s capital markets. I would like to express my gratitude to all partners and in particular Afreximbank whose support for the LSF's mission and objectives since inception has been instrumental in making this milestone possible and driving the international growth of African financial markets.”
Dr Vera Songwe
Founder & Chair of the LSF
Today’s Market Open ceremony brings together representatives from L&G, the LSF, FCDO and MOBILIST to recognise the collaboration behind this milestone and celebrate the Fund’s launch.
Capital at risk.
