Botswana Stock Exchange Limited (BSE) has announced that investment firm, Cloud Atlas Limited will list two Exchange Traded Funds (ETFs) on the stock market effective from Wednesday 8 September.
The two ETFs are Cloud Atlas S&P Africa Sovereign Bond Fixed Income and Cloud Atlas AMI Big50 ex- South Africa.
The former offers investors access to listed African Hard Currency Bonds by tracking an index developed in conjunction with S&P, which boasts a basket of quality credit-rated, high-yielding, and long-dated debt issued by African countries.
The portfolio consists of US Dollar bonds issued by: Egypt, Ghana, Kenya, Morocco, Namibia, Nigeria, and South Africa, paying on average approximately 6.8 percent yield per annum in USD.
The latter offers investors exposure to African equity, except South Africa, and tracks 15 sectors across 14 different countries.
The portfolio is designed to reflect a liquid basket of constituents for investors looking for Pan African exposure without the hassle of deciding what to buy.
It provides investors with the benefit of being exposed to the growth potential of the continent’s stock markets.
The portfolio consists of stocks from Botswana, Ivory Coast, Egypt, Ghana, Kenya, Mauritius, Morocco, Nigeria, and Tunisia.
Commenting on this listing, BSE CEO, Thapelo Tsheole said, “I am overwhelmed by the resounding and positive response to our market by issuers especially now when markets are still battling recovery. This goes to show that our efforts to grow the number and diversity of our issuer base are bearing fruit. We welcome the two ETFs from Cloud Atlas Limited and look forward to a dynamic market.”