Ethiopian Eurobond Yield Surges as Political Crisis Deepens

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ADDIS ABABA (Capital Markets in Africa) – The yield on Ethiopia’s $1 billion of Eurobonds surged after the government’s expulsion of seven senior United Nations officials drew criticism from the UN chief and a fresh threat of U.S. sanctions.

The rate on the debt jumped 24 basis points to a record high of 12.1% by 11:17 a.m. in London. The yield has almost doubled since a conflict erupted in the country’s northern Tigray region in November 2020.

Ethiopia’s government expelled the UN officials on Thursday for allegedly meddling in the nation’s internal affairs. UN’s Secretary-General Antonio Guterres said he was “shocked” by the news, while White House Press Secretary Jen Psaki warned the U.S. is preparing to take “aggressive action” under an executive order signed by President Joe Biden last month to impose targeted sanctions against individuals and entities in Ethiopia.

Source: Bloomberg Business News

 

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