In its drive to further expand into African markets, Absa Bank’s corporate and investment banking division announced that it would list its NewGold exchange-traded fund (ETF) on the Mauritius Stock Exchange (SEM), on July 26.

The listing on the SEM would mark the fifth exchange listing for NewGold, following its admission to the South African, Botswana, Nigerian and Ghanaian stock exchanges.

NewGold, Africa’s largest ETF, enabled investors to directly invest in actual gold bullion, as its securities were structured as debentures and backed by physical gold, with each debenture representing about 1/100th of an ounce of gold.

The physical bullion was held in a secure stockpile by NewGold custodian, Barclays Bank, in London.

Absa Capital's Corporate and Investment Banking division head Vladimir Nedeljkovic said the bank was encouraged by the success of NewGold in the other African markets in which it had been listed.

Launched in South Africa in 2004, NewGold was listed in Botswana in 2010, Nigeria the following year and in Ghana in 2012. Absa was also considering listing the fund in Zambia and Uganda.

Source: SEM