Legal & General launches first FCDO‑seeded African Government Bond ETF

Legal & General Asset Management has launched the L&G LSF African Government Bond (USD) UCITS ETF, the first exchange‑traded fund seeded by the UK Foreign, Commonwealth and Development Office (FCDO) through its MOBILIST programme. The fund tracks the iBoxx LSF USD African Sovereigns Index, which includes both investment‑grade and sub‑investment‑grade African sovereign bonds, and applies country caps and eligibility rules to manage concentration risk.

The launch is intended to broaden investor access to African sovereign debt, improve market liquidity, lower financing costs and mobilise private capital into emerging African economies. Lee Collins, Head of Index Fixed Income at L&G, said the product expands the firm’s emerging‑markets debt offering and supports the development of deeper, more liquid African capital markets.