Stock Exchange of Mauritius would list new debt instruments

The Mauritius stock exchange said yesterday it would list new debt instruments to attract global companies as it seeks to position itself as a financial platform bridging Africa, the Indian sub-continent and Asia. Sunil Benimadhu, the bourse’s chief executive, said listings on the bourse would in five years consist of international funds, specialised debt instruments, Africafocused exchange-traded funds and other structured products.

“The key near-term objective is to move away from an equity-based domestic exchange to a multi-product, internationally oriented exchange,” Mr Benimadhu told reporters. Last year, the Stock Exchange of Mauritius (SEM) changed its listing regulations to woo global funds and collective investment schemes looking for opportunities in Africa.

“Up to now, 11 global funds are listed on the market. The introduction of a new chapter in our listing rules fits very well with recent initiatives undertaken by the SEM to scale up its activities and move up in the value chain,” he said. The stock exchange also expects the number of new stock issuers and investors on its market to increase, deepening the breadth and depth of the market. 

“We are expecting the value of products traded and settled in USD, euro ... will outweigh the value of products traded and settled in rupee over the next five years,” Mr Benimadhu said.

The development of the financial sector is part of the island’s diversification to ICT, business outsourcing and offshore banking from traditional sugar, textile and tourism. Mr Benimadhu said the geographical position of Mauritius and the numerous taxation treaties that Mauritius has with a number of fast-growing African countries makes it the ideal place to structure and list instruments for investing in African markets.

“If we have the listing of 10 debt instruments between now and the end of the year, we will be happy,” he said. Vipin Mahabirsingh, managing director of Central Depository & Settlement Co. Ltd, a sister company of the SEM, said it was in discussions with the Bank of Mauritius and commercial banks to develop an active secondary market in government securities.

“We hope to be able to have the listing of government securities during the first (half) of 2012,” he said.Analysts said last September that a lack of liquidity on the SEM is deterring market-makers from supporting the bourse’s efforts to launch futures trading. Since 1989 the island’s benchmark SEMDEX index has had an annualised growth rate of around 15%.