Ethiopia saw soaring demand yesterday (4 Dec) for its debut $1bn Eurobond, after a quick US roadshow. Total demand was $2.6bn and the yield on the 10-year bond was settled at a relatively low 6.625%.
Ethiopia’s Finance Minister is meeting international banks Barclays, Citi and BNP Paribas about a planned Eurobond issue for late December 2014 or January 2015. The amount is unknown, the duration is likely to be “at least 10 years”.
Ethiopia, Africa’s fifth biggest economy, is thinking of a debut Eurobond, after it received its first international credit ratings on 9 May: it got B from Fitch and B/B from Standard & Poors.
Fitch Ratings agency has given Zambia a “B+” rating on long-term foreign and local currency, with a stable outlook, which could pave the way for a $500 million Eurobond, according to Standard Bank, but the country has plenty of local deposits seeking homes as local interest rates are attractive and the currency that looks strong.