Ethiopia Dollar Bond at Two-Year High on IMF Bailout Optimism
- Bond price has risen 12th days straight, longest ever streak
- Recovery rate well above than current bond price says Vanguard
The latest gains appear to be spurred by an announcement that it had signed agreements with the World Bank for $1.72 billion in credits and grants.
Photographer: Simon Dawson/BloombergThis article is for subscribers only.
Ethiopia’s defaulted dollar bond rose for the 12th straight day — a record run since its 2014 debut — as investors cheered news of a $1.72 billion financing package for the country and an extended deadline to agree an International Monetary Fund bailout.
By 4:35 p.m. in London, the bond was trading at 73.893 cents on the dollar, the highest level in more than two years. The $1 billion issue has been in default since December when the government missed an interest payment.