Ethiopia joins other African nations in listing its first bond on MSM
Ethiopia has listed a US$1 billion sovereign bond on the Main Securities Market (MSM) of the Irish Stock Exchange (ISE). The senior notes, admitted to the ISE’s EU regulated market, are the country’s first debt issuance. The Ethiopian debt security will pay interest semi-annually at a rate of 6.625% and is due in 2024.
The Federal Democratic Republic of Ethiopia is the latest African country to list their sovereign debt on the ISE. Other African nations to have securities admitted to the ISE’s debt markets include Kenya, Senegal, Rwanda, Ghana, and Egypt. Nigeria also has a Global Depository Note listed on the MSM.
The Ethiopian economy, which is primarily based in agriculture, has seen its annual average Gross Domestic Product (GDP) grow by 10.9% over the last decade. The Horn of Africa nation has stated that it will use the funds raised for planned Government capital expenditure in areas such as industrial zone development and the development of sugar and energy industries.