Multinational - Regional African Domestic Bond Fund (ADBF) technical assistance

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.