[miningmx.com] — Absa Capital said on Monday it was in talks with Kenya’s capital market regulator and Nairobi’s stock exchange about listing a gold-backed exchange traded fund, aiming to float in 2011.
The NewGold exchange-traded fund (ETF) is listed in South Africa where it is the largest ETF and invests directly in gold, with around 52.5 tonnes of gold bullion in assets.
Its value has catapulted as gold prices hit record highs.
Absa Capital said talks with the Capital Markets Authority (CMA) and Nairobi Stock Exchange (NSE) were positive, but in their early stages.
“I can confirm that Absa Capital … has started discussions with the NSE and the CMA regarding a secondary listing of the NewGold ETF on the NSE,” Graeme Coetzee, associate principal of marketing and corporate communications at Absa Capital, said in response to questions by Reuters.
“Absa Capital does not have any fixed timelines with regard to the listing of NewGold. It is our desire, however, to list in the first half of 2011.”
Absa Capital is the investment banking division of Absa and an affiliate of Barclays Capital, a unit of Barclays Plc.
Coetzee said NewGold ETF will be aimed at institutional and retail investors.
In October, Absa Capital said it had plans to list the ETF in Botswana and that it was in talks to list it in Nigeria.
