Ethiopia: ‘B’ rating by Fitch To debut Eurobond
Addis Ababa (HAN) November 7, 2014 – Public diplomacy and Regional Financial investment news. Ethiopia announces plans to issue Eurobond to interest foreign investors to the country. Ethiopia, which has previously said it was considering issuing a Eurobond, was awarded a ‘B’ rating by Fitch on Friday with a stable outlook. Kenya, which plans a Eurobond worth up to $2 billion, has received a ‘B+’ rating by Fitch. This decision offers an opportunity for Ethiopia, to enter international capital markets.
Ethiopia has mostly relied on domestic resources and Chinese loans to finance big infrastructure projects across the country. It clear now when it might tap international markets. With the global financial situation on the fence it would be interesting to see how this plays out. Foreign investors are closely watching Ethiopia, attracted by a decade of high growth and a market of about 90 million people.
Investors in the Emerging markets have exhibited appetite for the Bonds Market, after the success of Kenya’s debut Eurobond, other economies like Tanzania and Ethiopia have announced plans for their respective bonds.
Ayalenesh Tafese from Rand Merchant Bank joins CNBC Africa to discuss Ethiopia’s Eurobond plans and prospects for investors and the country.
Background: A eurobond is a bond denominated in a currency not native to the issuer‘s home country. Eurobonds are commonly issued by governments, corporations, and international organizations.
Source: http://www.geeskaafrika.com/ethiopia-b-rating-by-fitch-to-debut-eurobond/6253/
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