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 :
* 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
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.
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.
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,
used to repurchase additional bonds, or
used as payment for import commitments
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.
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