TCX Launches Frontier Currency Bond Index
The Currency Exchange Fund (TCX) launches the first-ever frontier bond currency index (TCX FI). The informative index tracks the performance of frontier currency-linked, investment-grade Eurobonds, issued by (multilateral) development finance institutions such as the African Development Bank, EBRD, FMO, and the IFC. The TCX FI currently covers 77 bonds in 20 frontier currencies where TCX has acted as hedging counterparty to the issuer. During a 3-year back-testing, the index outperformed a comparable EM-currencies portfolio in risk-return and diversification terms.
The uniqueness of the index lies in its underlying exposure. It includes frontier currencies such as the Uzbekistani Som, Honduran Lempira, Tanzanian Shilling, and Vietnamese Dong, which are not covered by existing indices. TCX calculates bond price information from the valuation of the bond’s hedges outstanding in its books.
Frontier debt is gaining traction among investors looking for alpha generation and portfolio diversification. The asset class remains underinvested due to high illiquidity, perceived risk, and accessibility concerns.
TCX has been set up specifically to provide currency risk protection to hard currency borrowers in countries where the market fails to deliver solutions.
The proceeds of the Frontier currency-linked Eurobonds fund institutions whose mission is to create impact in developing countries whilst applying the highest ESG criteria in the industry. Settled in euros or dollars, the bonds provide an accessible road to frontier currency exposure with minimal credit risk and no transfer and convertibility risk. The development of the index was made possible by the German Ministry of Economic Cooperation and Development, BMZ.
Ruurd Brouwer, TCX’s CEO states:
“Frontier currency bonds offer a unique combination of investment-grade credit risk with the market risk and return of frontier market currencies. Through TCX, the bonds redistribute currency risk from enterprises and financial institutions in frontier markets that cannot bear it, to asset managers and pension funds in the West that seek the additional return that comes with the risk. The index is an important step in generating visibility and transparency in this high impact asset class, showing that the real risk-return profile is better than the perceived one”.
Background information
TCX is an International Financial Institution that offers long-term currency protection in 100+ financial markets where such products are not available or poorly accessible. The Fund started operations in 2007 and has since then provided hedging instruments for USD 8.5 billion of total volume, spread over 3500+ transactions. The Fund has exposure for more than USD 5 billion in 60 frontier and emerging market currencies. By partially selling this exposure to private investors, TCX creates markets and gives these countries access to the international capital markets.
To view this piece of content from cts.businesswire.com, please give your consent at the top of this page.
View source version on businesswire.com: https://www.businesswire.com/news/home/20210330005005/en/
Contact information
Lucero Cabrera
communications@tcxfund.com
About Business Wire
For more than 50 years, Business Wire has been the global leader in press release distribution and regulatory disclosure.
Subscribe to releases from Business Wire
Subscribe to all the latest releases from Business Wire by registering your e-mail address below. You can unsubscribe at any time.
Latest releases from Business Wire
Blue Matter Establishes New Capabilities in Biopharma Research & Development Led by Partner, Tara Austraat-Churik13.1.2026 16:01:00 EET | Press release
Blue Matter is pleased to announce that it has established a practice area dedicated to serving clients in biopharmaceutical Research & Development (R&D). The practice is led by Tara Austraat-Churik, a Partner who joined the firm in September 2025. Tara Austraat-Churik has been serving life science clients for more than 20 years. Her areas of expertise include strategy development and implementation, operating model and organizational design, and process optimization in R&D and Medical Affairs. Prior to joining Blue Matter, she served as Managing Director in R&D, Health, Science, and Wellness at EY. She has a robust background in consulting, which also includes roles at Booz Allen Hamilton, Navitas, WPP, and IBM. She holds a BA and MA from the University of Notre Dame and an MSc in Translational Medicine from the University of Edinburgh. The R&D practice, according to Austraat-Churik, exists to help biopharma companies simplify and accelerate the pathway to market. She adds, “R&D organ
Wasabi Raises $70M in New Equity to Power the Next Era of Data Infrastructure13.1.2026 16:00:00 EET | Press release
Wasabi Technologies, the Hot Cloud Storage company, today announced a $70 million equity funding round led by L2 Point Management with participation from Pure Storage and existing investors including Fidelity Management & Research Company. The new round values Wasabi at $1.8 billion and brings the company’s total funding to over $600 million. The capital will be used to accelerate Wasabi’s expansion into AI infrastructure, broaden its global footprint, and enhance its product portfolio to meet the growing data demands of enterprises and AI developers worldwide. “We’re ushering in the next generation of cloud storage, powering data-intensive workloads like generative AI and autonomous systems,” said David Friend, co-founder and CEO of Wasabi Technologies. “This funding underscores Wasabi’s strong market position and continued growth as enterprises and AI developers alike seek a better, more predictable alternative to the hyperscalers.” Wasabi disrupted the cloud storage model in 2017 wi
Armis Secures Italy’s Primary Public Healthcare Provider for the City of Naples as Cyber Threats Increase13.1.2026 15:00:00 EET | Press release
Armis, the cyber exposure management & security company, today announced that ASL Napoli 1 Centro, Italy’s primary public healthcare provider for the City of Naples, is securing its attack surface using Armis Centrix™, the Armis Cyber Exposure Management Platform. Prior to working with Armis, ASL Napoli 1 Centro did not have the tools or capabilities to monitor physical and virtual assets in real time, which posed a challenge for its security and compliance. Armis Centrix™ was deployed with a clear goal: to provide ASL Napoli 1 Centro with a comprehensive, real-time view of its connected biomedical inventory and the associated risks to the overall environment. “Time-to-value was practically immediate; Armis began delivering valuable information as soon as the system was activated and connected to our internal network,” said Fulvio Paone, Director of the ICT and Digital Transformation Unit at ASL Napoli 1 Centro. “Armis has given us visibility into a critical area. This isn’t just about
Opengear Introduces CM8000 and OM1300: Two New Paths to Network Resilience as Outages Surge13.1.2026 15:00:00 EET | Press release
Opengear, a Digi International company (NASDAQ, DGII), today announced two new additions to its Network Resilience Platform: the CM8000 Series and the OM1300 Series. These next generation devices deliver compact, flexible, and automation-ready out-of-band infrastructure designed for a time when outages are increasing and distributed sites continue to scale. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260113807672/en/ Opengear Introduces CM8000 and OM1300: Two New Paths to Network Resilience as Outages Surge According to Opengear research, 84 percent of CIOs and CISOs have experienced a rise in outages over the past two years. The CM8000 Series and OM1300 Series were purpose-built to ensure that IT teams maintain access and control even when the production network is unavailable. The two series provide complementary approaches: CM8000 Series A serial-first recovery platform with integrated power control for core branches,
GARDP and Debiopharm Partner to Advance Development of Novel Gonorrhea Drug13.1.2026 15:00:00 EET | Press release
The GARDP Foundation (known as GARDP) and the privately-owned, global biopharmaceutical company Debiopharm today announced that they have entered into a collaboration and license agreement to pursue the development of Debio1453, a novel, first-in-class antibiotic targeting Neisseria gonorrhoeae. With 82 million new cases each year, and the continued spread of multidrug-resistant N. gonorrhoeae strains, gonorrhea represents a global health crisis. This new partnership will help ensure that gonorrhea continues to be a treatable disease and will alleviate the risk of the emergence of future resistance, by ensuring that the antibiotic pipeline continues to be replenished. Gonorrhea caused by N. gonorrhoeae is currently in danger of becoming untreatable because of antimicrobial resistance (AMR). Having developed resistance to almost all antibiotics used to treat it, only one last recommended treatment, ceftriaxone, remains effective, and now we are seeing a growing number of cases that are
In our pressroom you can read all our latest releases, find our press contacts, images, documents and other relevant information about us.
Visit our pressroom