Morocco joins AfDB’s Bloomberg bond index

AfDB administers ABABI, a family of African bond indices launched in February 2015 and calculated by independent global index provider Bloomberg.

“This is a positive development as the inclusion of Mauritius and Morocco, two of the highest rated African issuers, will improve the overall credit quality of ABABI, which now captures nearly 90% of outstanding African sovereign bonds in local currency, ”said Stefan Nalletamby, Director of the Bank’s Financial Sector Development Department.

Stefan Nalletamby noted that in the current environment, ABABI indices are a reliable tool for international investors to measure and track African sovereign bond markets.

“This will be even more relevant after the COVID-19 crisis as sovereign debt managers, who will have to further diversify their local currency financing instruments, will also have to adjust their strategies, improve transparency and broaden their base of bond investors. , given the increased financing needs of the economies, ”he added.

The pan-African financial institution explained that it is working to deepen the continent’s local currency bond markets. It will thus create an environment in which African countries can access long-term financing.

The bank stressed that it will work closely with the American financial group, Bloomberg, to provide investors with benchmarks, transparent and credible. This will make it possible, she emphasizes, to have a tool to better measure and monitor the performance of African bond markets.

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