Addis Ababa, 6 October 2014 (WIC) – Ethiopia announced its plan to issue international bond at the end of this year, the first of its kind move by the country to join the international capital market.

The announcement came following the sovereign credit ratings given to the country by three top international rating agencies last May.

Ethiopia had secured a credit rating from Standard & Poor’s and Fitch assigned a rating of “B” to the country’s sovereign treasury bonds, while Moody’s gave a “B1″ (B+).

“On the basis of the ratings, the government of Ethiopia has decided to issue a 10-year international bond and access international capital market,” Sofian Ahmed, Finance and Economic Development Minister told journalist today.

“The bond sale would serve as a potential means for the government to know the risk premium,” he said. This, according to him, will help Ethiopian business to access international capital markets by providing a benchmark for risk assessment.

He further said that the fund to be obtained from the sale of bond would be utilized to finance infrastructure projects.

All the necessary preparations have been done to issue the bond, including selection of world top banks that will issue the bond on behalf of the Ethiopian government, he said.

An agreement would be signed soon with three banks to issue the bonds. Hiring of International law firms that provide legal advice is also underway, he added.

Asked about devaluation of Ethiopian birr, Sofian said, “The government has no intention to devaluate birr. There is no economic reason to devaluate birr. Ethiopia’s economy is now stable.