ADDIS ABABA (Bernama) – Ethiopia has chosen three international banks – BNP Paribas, Deutsche Bank and JP Morgan – to arrange the country’s debut Eurobond issue following its decision to enter the international bond market.
The bond is likely to be for a minimum 10-year tenure.
Ethiopia, rated B1 by Moody’s and B by both Standard & Poor’s and Fitch Ratings, is expected to issue the bonds by the end of 2014 or in early 2015.
The country has decided to join the Eurobond market in a bid to diversify its sources to financing for mega projects it is undertaking or has proposed.
In its ratings, Fitch assigned Ethiopia a long-term foreign and local currency Issuer Default Debt Rating (IDR) of B with a stable outlook.
Standard & Poor’s meanwhile has assigned Ethiopia B/B foreign and local currency ratings and said the outlook for Africa’s second most populous country was stable.