The Nairobi Securities Exchange (NSE) working with international Index provider FTSE Group has officially announced the launch of the FTSE NSE Kenyan Shilling Government Bond Index today. The index is the world’s first independently calculated benchmark index tracking the principal Kenyan Government bond market.

“The launch of the FTSE NSE Kenya Shilling Government Bond Index Series, is the culmination of several months of consultation involving both the Nairobi Securities Exchange and various market participants. The Index offers innovative investment opportunities in the local fixed income market and provides the Kenyan debt market with increased international visibility”, FTSE Europe, Middle East & Africa Managing Director Ms. Imogen Dillon said at the index launch event held at the NSE and attended by NSE Chairman Bob Karina and chief guest CBK Governor Prof. Njuguna Ndungu among other stakeholders.

Prof. Ndungu said that the launch of the FTSE Government Bond Index Series, designed to attract more foreign capital investment, will  help position Kenya’s debt markets to raise capital to support Vision 2030 projects.

Kenyan Government issued bonds – known as Treasury Bonds –are issued through the Central Bank of Kenya and traded at the NSE.

The FTSE built bond Index will provide both local and international investors with a benchmark to measure the performance of Kenya’s national bond debt – known as sovereign debt.  It will be calculated based on the total returns available from the bonds over a certain evaluation period, as well as on how much capital has been raised through government bonds with a minimum value of 5 billion shillings.

In addition, the index will serve as a basis for the creation of financial products such as mutual funds and Exchange Traded Funds (ETFs).Today’s launch marked the third FTSE Index to take effect in Kenya after the  FTSE NSE Kenya 25 and FTSE NSE Kenya 15 Share Indices were launched on November 8^th last year.

Learn more about stock market indices here.