Repo business model

Why repo markets matter

A well functioning repo market supports liquidity and price discovery in the cash market, thus helping to improve the cost of funding for firms and governments and the efficient allocation of capital.”

BIS, 2017.

With our wealth of experience in the field, we are well placed to support a financial infrastructure solution for African Sovereign Eurobond debt. A more robust and liquid repo market should lead to more demand from buyers, more refinancing and lower costs of servicing that debt.

Brian Ruane, CEO of Clearance & Collateral Management, BNY Mellon.

“As a global asset manager, Amundi is proud to support the LSF. This mechanism will foster the emergence and the structuring of the African sovereign debt market, on par with the best international standards. It represents an important milestone for investors, as the African continent offers promising opportunities in terms of sustainable fixed income investment, in particular green bonds.

Vincent Mortier, CIO, Amundi

Developed countries have long enjoyed the existence of large “repo” markets for their government bonds, facilitating the creation of stable additional funding sources for their public finances.

The LSF objective is to kickstart the same dynamic for African sovereign bonds by providing investors with competitive funding through repurchase agreements (“repo”).

The LSF’s mission is to reduce the cost of borrowing by African Sovereigns, increase the pool of private capital willing to invest in Africa and mobilize affordable resources for green investments.

A repo facility dedicated to African Eurobonds, specifically designed to operate at the highest standards of global markets

About The Liquidity and Sustainability Facility 
The LSF was designed by the United Nations Economic Commission for Africa, in collaboration with Afreximbank, with the dual objective of supporting the liquidity of African Sovereigns Eurobonds and incentivizing SDG-related investments such as SDG and green bonds on the African continent.

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