Ethiopia is set to wrap up its debut dollar bond sale on Thursday, capping off a record year for frontier market debt issuance.
The 10-year bond will price to yield 6.625% and will raise $1 billion, according to one of the banks working on the deal. Investors said demand for the bond had reached around $2 billion.
The deal is another landmark sale for Africa, having seen a bumper $2 billion debut issue from Kenya in June—one of the largest ever first-time sales from the region.
“We’re running out of new names that can issue,” said Kevin Daly, a fund manager at Aberdeen Asset Management in London, adding that Ethiopia is the poorest country that has issued international bonds.
Ethiopia is rated B1 by Moody’s Investors Service and B by Standard & Poor’s Corp. and Fitch Ratings, four and five levels below investment grade, respectively. Deutsche Bank and J.P. Morgan are managing the bond sale.
http://www.marketwatch.com/
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