Sub-Saharan Africa debt fund launched

LONDON -Standard Bank said yesterday it had been awarded a mandate of up to US$100 million by a US government agency to manage a sub-Saharan Africa debt fund.

The Standard Africa Development fund will invest in external and local currencies in sub-Saharan Africa, with the exception of South Africa, Standard Bank said in a statement. The fund will focus on corporate debt, but will also invest in sovereign bonds.It follows the launch of the Standard Africa Equity Fund last August.Overseas Private Investment Corporation (OPIC), a US government agency which promotes and helps private sector investments outside the US, has committed up to US$100 million to the fund.OPIC pledged US$250 million to three other African investment funds late last year, aimed at developing the continent’s capital markets.Investors are continuing to look at sub-Saharan African assets despite the global sub-prime crisis, attracted by expectations of strong economic growth and by the region’s relatively low correlation to developed markets.Nampa-ReutersThe fund will focus on corporate debt, but will also invest in sovereign bonds.It follows the launch of the Standard Africa Equity Fund last August.Overseas Private Investment Corporation (OPIC), a US government agency which promotes and helps private sector investments outside the US, has committed up to US$100 million to the fund.OPIC pledged US$250 million to three other African investment funds late last year, aimed at developing the continent’s capital markets.Investors are continuing to look at sub-Saharan African assets despite the global sub-prime crisis, attracted by expectations of strong economic growth and by the region’s relatively low correlation to developed markets.Nampa-Reuters