International repo facility
for African Eurobonds
News
S&P DJI report
Unpacking the Dynamics of African Sovereign Bonds with the iBoxx LSF USD African Sovereigns Index.
Finadium
LSF releases Africa GC repo basket with major triparty agents.
Enhancing liquidity in African sovereign debt markets
The Liquidity and Sustainability Facility supports African Sovereigns and Private Investors by contributing to a liquidity strategy on par with international standards. The LSF provides repo facilities for African Eurobonds, helping reduce borrowing costs and improve market access.
Three-pillar strategy
The LSF implements its strategy through 3 channels:
Large repo deals for investors
The LSF is a repo facility dedicated to African Eurobonds, specifically designed to operate at the highest standards of global markets.
General Collateral Basket
The LSF Triparty Repo Africa Basket comprises a curated selection of African sovereign and corporate Eurobonds based on a combination of quantitative eligibility thresholds and qualitative assessments.
Market index
The iBoxx LSF USD African Sovereigns index tracks the performance of the universe of African Sovereign Eurobonds that the LSF accepts as eligible collateral in the framework of repo transactions.
Our objectives
Supporting the liquidity of African Sovereigns Eurobonds
African governments have historically faced high costs of borrowing. Compression of liquidity premia and improved sovereign access to Eurobond markets has the potential to save African nations an estimated USD 11 billion on borrowing costs over the next five years. Improved liquidity may have the effect of compressing yields by strengthening the demand and consequently, the price of eligible sovereign bonds. By supporting these objectives, the LSF seeks to support the debt sustainability of African nations.
Incentivising green and SDG-related investments
The LSF aims to support the green and sustainable recovery of African countries. Currently, the share of sustainability-linked bonds issued in Africa and the Middle East accounts for less than 1 per cent of the global total amount, indicating that there is a large potential for growth, and opportunities for SDG investors. The LSF utilises its resources to engage with investors with a special focus on green and SDG linked investments, thus seeking to promote sustainability-linked investments in Africa.
Trusted partners
Founding partner
Index collaboration
Research partner
Operational partners
The LSF Administrator
The LSF Structuring Advisor
The LSF Global Market Infrastructure Agents
The LSF Legal Firms
With the support of
How we do it
The Repo market is an essential part of the good functioning of global financial markets and the path to affordable government debt. The LSF seeks to help the African Sovereign Eurobonds repo market reach the same level of maturity as in developed countries.
About The Liquidity and Sustainability Facility
The LSF was designed with the support of the United Nations Economic Commission for Africa and Afreximbank with the dual objective of supporting the liquidity of African Sovereigns Eurobonds and incentivizing SDG-related investments such as SDG and green bonds on the African continent.
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