FTSE and Nairobi Exchange launch government bond index

The Nairobi Securities Exchange (NSE) and the FTSE Group index provider are to launch a Kenyan Shilling Government Bond Index, the first benchmark index tracking the Kenyan government bond market.

The FTSE NSE Kenyan Shilling Government Bond Index aims to provide investors with an accurate metric to measure the performance of Kenyan sovereign debt. Calculated on both a capital and total return basis, it includes KES denominated bullet bonds, zero coupon bonds and strippable bonds with a minimum notional of KES 5 Billion. Sub indices are also calculated for a range of maturities.

A statement said the index is designed to be suitable for use as a performance benchmark, and will play an important role in the development of capital markets and corporate governance in East Africa. It is also suitable as a basis for the creation of financial products, such as mutual funds and ETFs.

Such enhanced market access will contribute to the growth and visibility of African debt markets.

The index complements the FTSE NSE Kenya Equity Index Series, launched in November 2011. FTSE is an independent company owned by the London Stock Exchange Group.

The Nairobi Securities Exchange (NSE) is the principal securities exchange of Kenya. Besides equity securities, the NSE offers a platform for the issuance and trading of debt securities. In terms of market capitalization of equities, it is Africa’s sixth largest securities exchange. The NSE is a member of the African Securities Exchanges Association (ASEA) and the East African Securities Exchanges Association (EASEA). It is an affiliate member of the World Federation of Exchanges (WFE).

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