|Approval Date||05 Feb 2010|
|Signature Date||15 Dec 2010|
|Planned Completion Date||30 Jun 2017|
|Last Disbursement Planned Date||31 Dec 2017|
|Sovereign / Non-Sovereign||Sovereign|
|DAC Sector Code||15124|
The project consist of to put in place the structure for a long-term relationship among financial market stakeholders in Africa. The AfDB seeks to contribute to the development of sound domestic debt markets in Africa through the creation of the African Domestic Bond Fund (ADBF). The ADBF will be invested in local currency denominated sovereign and sovereign guaranteed sub-national bonds. In order for the investments to be defined as foreign reserves according to the definition of the International Monetary Fund (IMF), the ADBF will be funded by African Central Banks. The management of the Fund will be conducted by a reputable international asset manager. The Bank of International Settlements (BIS) will act as an administrator.Through the ADBF, the Bank has a unique opportunity to break new ground and be in promoting the development of African domestic bond markets. At present no other African institution offers a fund solely dedicated to investing in local currency denominated debt. The proposed ADBF project will be organized into the following four components: (i) The ADBF Feasibility Study; (ii) Construction of the African Domestic Bond Index (ADBI); (iii) Pan-African workshop and creation of mutli-disciplinary working groups; (iv) The creation and launch of the ADBF.
The objective of this project is to create a bond fund that will invest in local currency denominated debt in Africa. This will enable the Bank to further build on its expertise as an issuer and lender in local currency, to become the focal point for African domestic bond markets.
The project's main beneficiaries are RECs, Central Banks, DMOs/MoFs, Private sector and AfDB. The ADBF will seek to empower RECs as the focal points for the establishment of the regional multi-disciplinary working groups. It is also envisaged that Central Banks (as administrators of government debt) and DMOs/MoFs as issuers and policy makers will benefit from the capacity building funded through the multi-disciplinary working groups. Private sector market participants will be provided with a platform to engage fully with legislators and policy makers to remove restrictions to bond market development and provide constructive feedback on new legislation and implemented policies. Lastly, the ADBF will provide the Bank with an opportunity to play a coordinating role between stakeholders and donors, through the creation of the regional multi-disciplinary working groups.
Fund for African Private Sector Assistance
African Development Bank (ADB)
|Last Update||05 Dec 2020|