Ethiopia’s Sovereign Bond sale testifies right policy
Sofian Ahmed, Minister of Finance and Economic Development told reporters that the over subscription of Ethiopia’s first ever sovereign bond testifies Ethiopia is following right development policy. He said though Ethiopia was new to the bond market, high interest was shown from international investors. This, he said, is exemplified in the fact that Ethiopia got 2.6 billion dollar subscription for the one billion dollar bond it submitted. Minister Sofian said “the trust on Ethiopia’s sovereign bond is a proof to the success of government’s development policy” and added that “the sale of the bond signifies that Ethiopia is no more considered as aid recipient rather it is becoming an economic partner.” He added that the sale proceed of the bond will be used to finance different development projects. Ethiopia’s sovereign bond worth 1 billion dollar, having maturity date of 10 years and 6.625% interest rate was sold out in less than a week time. 50% of the bond was bought by US investors while 35% was taken by UK investors and the remaining 14% by European investors and 1% from other countries. 96% of the bond was bought by major fund managing global companies.