EEPCO Millennium Bond

"EEPCO Millennium Bond"

Features of the 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 Bank’s 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 MILLINIUM BND in pdf format.

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