By
Vishal Bhidu
Prime Minister Hon Pravind Kumar Jugnauth launched on Monday, August 21 the AFEXtree, considered as a platform from the AFRINEX Stock Exchange striving to connect capital seekers with capital providers from across the globe.
This initiative will facilitate multi-currency fundraising through private placement of securities in an efficient and transparent manner thereby enabling greater access to capital at competitive cost. The event was graced by Her Excellency High Commissioner of India to Mauritius, Shrimati K. Nandini Singla, Hon’ble Minister of Foreign Affairs, Regional Integration and International Trade, Minister of Land Transport and Light Rail, Mr. Alan Ganoo, Hon’ble Minister of Financial Services and Good Governance, Mr. Mahen Kumar Seeruttun.
One of the main highlights of the event was the bell-ringing ceremony to mark the listing of USD 500 Million 2034 Sustainable bond of UK based companies Earthnest Ltd. on AFEXGreen & AFRINEX Securities List and USD 1.5 Billion 2034 Bond of Xpertnest Ltd. on AFRINEX Securities List.
The coveted and much-anticipated event witnessed delegates’ participation from Europe, Asia, America and Africa where the state-of-the-art electronic platform, AFEXtree, will facilitate companies and investors to meet their financial needs by bridging the financing gap. Several international media and TV crews also flew to cover the grand launch.
Participants on AFEXtree could be banks, financial institutions, body corporates, investment dealers/ stockbrokers, merchant bankers, investment banks, collective investment schemes, alternative investment funds, and asset managers, among others.
There are many firsts where for instance, a Mauritius-based collective investment scheme did the maiden transaction on the platform securing investment for its feeder fund. Launched on August 21, AFRINEX has been the fastest-growing stock exchange from Mauritius with listings of more than USD 13.3 Billion till date of which USD 1.5 Billion are sustainable bonds listed on the dedicated sustainable securities listing platform AFEXGreen.
AFRINEX Clearing House, which is the wholly owned subsidiary of AFRINEX offers a wide range of depository services including the issuance of International Securities Identification Number (ISIN) holding of securities in dematerialized form, facilitating corporate actions, etc. which has been a key point of attraction for global investors and issuers.
At the outset, PM Jugnauth remarked: “AFRINEX has contributed to support the financial development of the economy where it has become an undeniable factor in helping to position Mauritius as a financial center of substance.”
He added: “Africa is a land of opportunity while at the same time, it has an urgent need for funding based on a study of Capital Economics in 2021 advocating that some USD 350 billion is needed to meet its sustainable objectives. We are aware that India today has an emerging number of wealthy families looking for opportunities to invest in impactful projects where AFRINEX can play a vital role along the India-Africa corridor.”
“AFRINEX can offer stability, sustainability, certainty, and predictability to the MIFC where investors want to make sure that their investments are protected. This initiative will further set the stage for Mauritius as an attractive jurisdiction for investors seeking to raise capital and companies seeking an A-listing in Mauritius with AFRINEX’s firm belief, commitment, and trust in the MIFC. This is just the beginning in a series of innovations which will continue to strengthen the MIFC.”
Indian High Commissioner Her Excellency Shrimati Nandini K Singla commented: “AFRINEX has emerged as the largest stock exchange in Mauritius in terms of market capitalization of listed securities, barely within 18 months of its existence. I hope that today’s launch of AFEXtree – an innovative capital-raising platform brings in a new era of collaboration between companies, arrangers, and investors. AFEXtree is also opportune in a post-COVID world where like music, news or films, increasingly, an International Financial Centre of tomorrow will no longer be about physical infrastructure, but more about offering transactions platforms that seamlessly capture global financial transactions in investment and trade.”
Managing Director and CEO at AFRINEX Ms. Krishna Gangopadhyay said, “It is a proud moment for us today as we celebrate the launch of AFEXtree – The capital raising platform which is poised to transform the capital raising process by connecting capital seekers & capital providers. Today’s listing of bonds worth USD 2 billion of Earthnest & Xpertnest on AFRINEX Securities List is testimony of AFRINEX’s successful strides made in the primary market which has enhanced the confidence of international issuers to participate in the capital markets and consider AFRINEX as a preferred listing jurisdiction. AFRINEX will continue its sincere efforts to contribute to strengthening the capital market ecosystem in and through Mauritius.”
She lauded the role played by Prime Minister Pravind Jugnauth without whose support the event wouldn’t have been possible when he shared a long time back the intention to set up an international exchange together with the unflinching support offered by the Indian High Commissioner Her Excellency Shrimati K Nandini Singla since Afrinex’s inception.
“This has been a unique platform from Mauritius where I’m confident and hopeful that this will set up a trend in how financers meet capital seekers in time to come. It’s on account of Mauritius announcing its own state-of-the-art capital raising platform that will redefine the primary market space that will greatly help issuers from Africa and even globally to leverage the platform in a transparent and cost-efficient manner.”
On the other hand, Minister of Financial Services and Good Governance Hon Mahen Seeruttun underlined, “AFRINEX is successfully fostering the development & growth of Mauritius capital markets through its innovative offerings thereby attracting global players to the IFC. This will also strengthen the ecosystem of primary market funding in Mauritius and Africa.”
The chairman of Xpertnest and Earthnest Mr. Biswanath Patnaik stressed upon: “This unique collaboration between financial experts and technocrats serves as a remarkable example of how pressing global issues can be effectively addressed. The decision to list their businesses in Mauritius holds strategic significance, as it not only connects them with Africa but also establishes a strong presence in India due to the synergy between BSE technologies and Afrinex. Their shared mission to combat plastic bag pollution showcases their commitment to leaving a healthier world for future generations.”
While founder at Xpertnest and Earthnest Mr. Arun Kar said, “Xpertnest and Earthnest have successfully listed their bonds, valued at $1.5 billion and $500 million respectively, on the AFRINEX Stock Exchange located in Mauritius. These companies were founded by Arun Kar and Chintan Panara, with guidance from Biswanath Patnaik. Their visionary leadership has led to the creation of advanced and innovative applications that help address critical challenges in various sectors, such as crime prevention in collaboration with law enforcement agencies, pioneering 5G technology, and the development of Smart Cities. By integrating Data Science, Artificial Intelligence, and Machine Learning, they’ve harnessed the potential of cutting-edge technologies.”
The Exchange has been set up with the vision of the Hon’ble Prime Minister of Mauritius, Mr. Pravind Jugnauth in its endeavor to strengthen Mauritius as an International Financial Centre and has been supported by the Government of India with technology and skill support from BSE Technologies.
At One Glance: AFRINEX
Incorporated in Mauritius, AFRINEX offers several value propositions such as a Balanced Portfolio-Trade and invest in Equity, Debt (Short-term, medium-term, long-term), funds, derivatives, and currency in a single segment.
-AFRINEX Clearing House, a wholly owned subsidiary of AFRINEX LTD as the Clearing Settlement and Depository of AFRINEX.
-Ease of Entry and Exit: Trade remotely worldwide and react anytime-up to 13 hours of continuous trade.
-Strong foundation of Primary and Secondary Market: Built on a strong foundation for capital raising, transparency, price discovery, and price risk management.
-Best in class technology: Low latency, high throughput-response time of 6 microseconds; Trade using strategy and algorithm from co-location; Access market through brokers, sponsored access (SMA) or direct access (DMA).
-Competitive cost: Trade in USD-no currency risk; Optimised collateral use due to a single segment.
Offerings for Primary Market:
-Ability to raise funds through a wide spectrum of securities.
-Transparent and credible listing rules.
-Efficient Listing process.
-Ability to access domestic and international investors.
-Competitive fee structure.
-Flexible options to list and trade.
Why list in AFRINEX Securities List?
There are several advantages offered to issuers such as securities including on the official list of Afrinex, no need for clearing or conclude settlement by a clearing house, no subject to rules pertaining to admission for trading; simplified and rapid listing process; No minimum public float requirements; enhanced visibility across the globe through Bloomberg linkages; Competitive Listing fee and Annual Fee.
For investors, the incentives consist of investment in securities admitted to the official list; access to data of securities listed on ASL; Indicative prices; Portfolio valuation.
