My Weblog: kutahya web tasarim umraniye elektrikci uskudar elektrikci umraniye elektrikci istanbul elektrikci satis egitimi cekmekoy elektrikci uskudar kornis montaj umraniye kornis montaj atasehir elektrikci beykoz elektrikci
Ethiopia is going to provide another round of Eurobond auctioning for international buyers. The new House of Peoples’ Representatives (parliament) that will be nominated in October is expected to authorize the issuance of the bond immediately after its formation.
There are speculations that the amount of bonds that will be floated will be similar with the previous amount, however the exact amount to be made available is yet to be confirmed by relevant government bodies.
Haji Ibsa, Public Relations Head of the Ministry of Finance and Economic Development (MoFED), told Capital that the new parliament will have its first meeting in the first week of October, and would then decide the amount of bonds to be made available and specify projects the money will be spent on.
“Ethiopia is already a shareholder in the international bond market and can issue bonds any time for potential buyers,” he said.
Ethiopian officials are expected to meet with main transaction managers of international financial markets in the coming week in London. Haji said that the coming meeting will be unlike previous meetings because the country’s rating and interest rate to be charged are already determined, and will match previous rates.
The country had sold the first USD 1 billion of Eurobond for buyers in the past Ethiopian fiscal year, ending on July 7.
Before issuing the first bond in December 2014, a confederacy of officials led by Sufian Ahmed, Minister of MoFED, had lobbied international bond buyers in Europe and the US to buy Ethiopian bonds with higher yields.
At that time, Ethiopia completed its inaugural Eurobond issuance, pricing a 10-year USD 1 billion benchmark at a coupon of 6.625 percent. The bond was oversubscribed by 260 percent, bought primarily by U.S. investors (50 percent), followed by buyers in the UK (35 percent), Europe (14 percent) and others (1 percent). Fund Managers dominated the allocations (receiving 96 percent), underscoring the high caliber of demand.
The amount that was collected from the Eurobond was invested on sectors with potential to accelerate the economy. Industry zones and manufacturing sectors that will help expand export revenue are the main areas the funds were allocated to.
MoFED receives professional financial advisory service by the French company Lazard. During the first bond issuance Deutsche Bank of Germany and J.P. Morgan of USA acted as Joint Lead Managers for the transaction. These two companies are expected to manage the transaction of the second bond on behalf of Ethiopia. In a statement released on November 7, 2014, French financial consultancy firm Fitch indicated that as the government relies heavily on concessional lending from multilateral creditors, maturities are long while interest payments, at 2.1 percent of budget revenues, are extremely low. The foreign currency share of public debt, was at 60.5 percent by the end of 2014(FY), in line with peer bonds. This moderate level of debt was made possible by keeping general government deficit below 4 percent of GDP over the past decade, spending restraints, and outsourcing parts of investments to state-owned enterprises. In its first ever rating, Ethiopia got B1 by Moody, and B by Standard and Poor’s and Fitch.