LSF closes inaugural $100 million repo transaction at COP27
The Liquidity and Sustainability Facility (LSF) designed by the United Nations Economic Commission for Africa (ECA), in collaboration with African Export-Import Bank (Afreximbank), announces at COP 27 it has concluded its inaugural repo transaction with Citi for an amount of USD 100 million. This innovative transaction, with funding support from Afreximbank, seeks to bring the benefits of a well-developed repo market to the African continent, with the goal of enhancing the liquidity of a diversified basket of Sovereign Eurobonds including The Arab Republic of Egypt, Kenya and Angola as issuers. The transaction relies on an innovative Triparty platform designed for the LSF by BNY Mellon. The LSF is now in the process of signing-in clients to the platform, including potentially two of the largest American and European fixed income private investors.
This first transaction marks the full operationalization of the LSF’s business model, enabling it to start fulfilling in earnest its two objectives of supporting the liquidity of African Sovereigns Eurobonds, and incentivizing SDG-related investments such as SDG and green bonds on the African continent.