Ethiopia announced perhaps the first sub-sovereign corporate bond aimed at the diaspora. A release by the Ethiopian Ministry of Foreign Affairs says that the bond launched on December 23rd will provide funds to the Ethiopian Electric Power Corporation (EEPCO) for investments which will increase power supply to the nation, where only 27 percent of the people currently have access to electricity.
The government-guaranteed bond will be issued for a minimum denomination of US$500, maturing in 5, 7 or 10 years (with interest rates of 4%, 4.5% and 5% respectively). The interest earned would be free of income tax. The news that companies in developing countries are starting view migrants as a potential source of external (hard currency) finance is indeed noteworthy. I will post more details as they become available.
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