The potential of Diaspora to invest in the growing Ethiopian Economy is enormous, both in terms of the potential to generate a return and the impact of boosting growth, knowledge and capacity within the country. For those Diaspora who really feel passionate about the future of Ethiopia, they can contribute most to its development by investing in one of the areas identified by the Government of Ethiopia. Among These areas the Ethiopian Electric Power Authority issued Millennium corporate Bond.
Features of the Millennium Bond
*
Bond type :
Corporate Bond
*
Issuer of the bond :
Ethiopian Electric Power
Corporation( EEPCO)
*
Agent:
Commercial Bank of Ethiopia (CBE)
*
Name of the bond:
EEPCO Millennium Bond
*
Currency : USD, Pound
Sterling, Euro and other convertible currencies
*
Eligibility :
Non-resident Ethiopians and Foreign Nationals of Ethiopian origin only
*
Minimum bond issued:
USD 500
*
Maturity: 5, 7 and 10
years
*
Payment of bond:
At maturity
*
Payment of interest:
Annually
*
Guarantor: Government
guaranteed bond
*
Additional Benefit:
The bond can be used as a collateral for loans in local currency.
*
Income Tax: Interest
income earned from the bond is free from any income tax.
Means of Purchase: The buyer can effect payment via
1. SWIFT
transfer
Up on payment via SWIFT*
transfer, the Bank will send the bond certificate to the buyer or keep the
certificate under the Banks custody upon consent of the buyer.
2. Diaspora
Foreign Currency Account
A*
prospective bond buyer can instruct CBE or other domestic banks to debit his/her
Diaspora Foreign Currency account to purchase the bond. The account holder can
also purchase the bond through power of attorney holders.
3. Cash
Ethiopian Diaspora can purchase the*
bond from CBE in foreign currency. In this case, it is mandatory for the buyer
to present a foreign currency declaration form.
Interest Rates and Payments
The interest rates are
4%, 4.5 % and 5% for 5, 7 and 10 years*
maturity periods respectively.
Interest on the bonds will be paid annually*
and the bond holder can either receive interest payments in foreign currency or
in Birr at the prevailing exchange rate.
The interest earned can*
be:
collected in Birr in person or through power of attorney holders,
deposited in foreign currency or birr account,
transferred abroad,
used to repurchase additional bonds, or
used as payment for import commitments
Transferability:
The Bond can be transferred to a second party upon the consent* of the bond holder and fulfillment of the required documents.
Upon maturity, the bond holder can:
*
receive the face value of the bond in foreign currency,
purchase another*
bond with the same face value,
effect local payments,*
deposit in*
foreign currency or birr account, or
pay for import*
commitments.
SWIFT Addresses:
Arada Ghiorgis Branch
..CBETETAAARA
Finfine Branch
.
..CBETETAAFIN
Temnja Yaj Branch
.
.
CBETETAATEM
Diredawa Branch
..CBETETAADIR
Other Branches and International Banking Department
................CBETETAA
Click here to download the application form for purchase of EEPCO MILLENNIUM BOND