Absa Capital, the investment banking division of Absa Bank Ltd (Absa), and Barclays Capital, the investment banking division of Barclays PLC, today announced the relaunch of their South Africa Government Inflation-Linked Bond Index as the Barclays Capital/Absa South Africa Government Inflation-Linked Bond Index.
The product is part of the Barclays Capital Emerging Markets Government Inflation-Linked Bond Index (EMGILB) which measures the total return performance of inflation-linked bonds from the major emerging market countries.
The Barclays Capital/Absa South Africa Government Inflation-Linked Bond Index consists of four bonds which make up 7% of the Barclays Capital Emerging Markets Government Inflation-Linked Bond Index and 1% of the Universal Government Inflation-Linked Bond Index.
Pricing for the bonds will be provided by Absa Capital.
Wayne Dennehy, Head of Institutional Structuring at Absa Capital said: “The Barclays Capital/Absa South Africa Government Inflation-Linked Bond Index is designed to provide investors with an accurate benchmark for performance measurement, and offers discrete building blocks for market analysis and portfolio construction.”
“The index provides an accurate, comprehensive depiction of the performance and fundamental characteristics of the South Africa Government inflation-linked bond market and is a sub-set of the Emerging Markets Government Inflation-Linked and Universal Government Inflation Indices.”
Waqas Samad, Head of Index Products and POINT at Barclays Capital, said: “Investors need a reliable benchmark, and as the global leader in inflation-linked trading, products and indices, we are ideally placed to satisfy that demand.”
“Absa Capital has a strong fixed income franchise in South Africa, and our partnership in this product gives us a platform to provide investors with the best benchmark.”
About Absa Capital
Absa Capital, a division of Absa Bank Limited (Absa) and affiliated with Barclays Capital, is a leading South African investment bank with global reach, offering clients financing, risk management and advisory solutions in a wide range of currencies and structures across the globe.
About Barclays Capital
Barclays Capital is the investment banking division of Barclays Bank PLC. With a distinctive business model, Barclays Capital provides large corporate, government and institutional clients with a full spectrum of solutions to their strategic advisory, financing and risk management needs. Barclays Capital has offices around the world, employs 20,000 people and has the global reach, advisory services and distribution power to meet the needs of issuers and investors worldwide.
About the Barclays Capital EMGILB indices
The Barclays Capital Emerging Markets Government Inflation Linked Bond Index (EMGILB) measures the total return performance of inflation-linked bonds from the major emerging market countries. The index includes government debt i.e. direct obligations of the state issuer. Quasi-government and corporate debt is not included in the index.
The index currently consists of 60 bonds from nine countries and has an overall market capitalisation of around $213 billion. The 5 LATAM markets account for around 85% of the overall index capitalisation. Brazil is the largest market with a weight of approximately 62%.
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