More, please. Ethiopia is looking to tap capital markets once again after becoming the poorest country ever to exploit the global sovereign bond market with its debut $1bn deallast December.
The Federal Democratic Republic of Ethiopia is organising a series of "non-deal" bond investor meetings next week in London, New York and Boston, writes Joel Lewin.("Non deal" means there's no specific transaction lined up, but it's a reasonable bet that there will be soon enough.)
Ethiopia's debut 10-year bond priced at a yield of just 6.625 per cent, underscoring how years of ultra-low interest rates have allowed countries that would previously have struggled to drum up investor interest to tap global capital markets. The compression of yields has compelled investors to look further afield in the hunt for returns.
The deal comes after a series of other African nations have turned to international capital markets to raise money this year.
The Ivory Coast raised $1bn in February, while Zambia raised $1.25bn in July.
Landlocked Ethiopia country in the Horn of Africa has engaged Lazard as it financial advisor. It willl organise the meetings with the help of Deutsche Bank and JPMorgan.
Last week Nigeria's prospects took a hit when JPMorgan ejected the country from its bond indices due to concern about restrictions of FX trading in the country.
Ethiopia's debt bond has been a bit of a bumpy ride in secondary markets, as you can see from the chart below.
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