17/04/2012 — NEW YORK — (BUSINESS WIRE)
Citi announced that the South African Government Bond Index has become
eligible for inclusion in its World Government Bond Index (WGBI). Its
April 2012 profile has satisfied all three WGBI requirements — size,
credit, and lack of barriers-to-entry.
If South Africa continues to meet all WGBI criteria with the May and
June 2012 profiles, it will become the first African government bond
market to be included in the WGBI, bringing the number of sovereign
markets to 23, effective October 2012.
“This is a big milestone for the WGBI as we continue to diversify our
coverage,” said Ernest Battifarano, Global Head of Index Development &
Production. “Investors who have not previously considered South Africa
may tap into this exciting and developing market.”
There are 11 South African government bonds in the April 2012 profile,
with a market value of US$88.34bn. This will carry a projected market
weight of 0.44% in the index.
The World Government Bond Index (WGBI) is a total return index that
currently includes government bonds from 22 countries. Entry criteria to
the index are (1) minimum market capitalization (USD50bn, EUR40bn and
JPY5trn), (2) credit rating (domestic long term rating of A-/A3 by
either S&P or Moody’s), and (3) no barriers to entry. The index includes
both developed and emerging market bonds. Each country will have its own
criteria in terms of outstanding amount for bonds to be included in the
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accounts and does business in more than 160 countries and jurisdictions.
Citi provides consumers, corporations, governments and institutions with
a broad range of financial products and services, including consumer
banking and credit, corporate and investment banking, securities
brokerage, transaction services, and wealth management.
Additional information may be found at www.citigroup.com
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Scott Helfman, +1 212-816-9241
Boughey, +44 207508-3864
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