(21 March 2011, Addis Ababa)-The Development Bank of Ethiopia (DBE), the state owned bank that issued bond sales a week ago, has pledged about 13 million birr worth of bonds sold at the official launching ceremony, held a week ago.
On the first day of bond sales, ministers and prominent people had been mostly interested in purchasing the coupon. Issayas Bahire, CEO of the bank, told Capital that promising activities have been seen by the public since the bank issued the bond a week ago.
He said that bond buyers that appeared in the branches of DBE and Commercial Bank of Ethiopia (CBE), who needed more explanation about the new scheme, have been in the majority in the first week of the bond sales, while there was also a practical sale during the same week.
“The interest of the public in knowing more about the bond sales has shown us that this is promising and that sales could increase in the next few weeks,” Issayas anticipated.
The CEO said that in the past week they are focused on the training of staff and distribution of bond coupons for two bank branches and sub branches throughout the country. He said that significant sales are expected in the coming weeks. “We will start the official counting of the bond sales beginning in the coming week,” the head added.
Bond buyers, who bought bonds for their children with a maturity date of ten years is one of the major trends observed during the first week of bond sales, officials at the bank told Capital.
The DBE bond, that has from a 500 to 100,000 birr coupon range, has been offered for a minimum price of 500 birr and does not have a maximum purchasing limit. Bonds with a maturity date of one to five years will have a 5.5 percent interest rate and for over five years the interest amount will be six percent.
Officials expect to collect about 200 million birr this fiscal year which ends this June 30. DBE plans to collect close to 11 billion birr from bond sales in the coming five years. This will cover about 38 percent of the bank budget to be disbursed for agricultural and related projects in the five year plan.
The rural public is the wide target of the bond sales, while the biggest amount of sale is expected to carry on in urban areas. According to DBE’s five year plan, it will release 28 billion birr in loan provisions for developmental projects.
Source: Capital
On the first day of bond sales, ministers and prominent people had been mostly interested in purchasing the coupon. Issayas Bahire, CEO of the bank, told Capital that promising activities have been seen by the public since the bank issued the bond a week ago.
He said that bond buyers that appeared in the branches of DBE and Commercial Bank of Ethiopia (CBE), who needed more explanation about the new scheme, have been in the majority in the first week of the bond sales, while there was also a practical sale during the same week.
“The interest of the public in knowing more about the bond sales has shown us that this is promising and that sales could increase in the next few weeks,” Issayas anticipated.
The CEO said that in the past week they are focused on the training of staff and distribution of bond coupons for two bank branches and sub branches throughout the country. He said that significant sales are expected in the coming weeks. “We will start the official counting of the bond sales beginning in the coming week,” the head added.
Bond buyers, who bought bonds for their children with a maturity date of ten years is one of the major trends observed during the first week of bond sales, officials at the bank told Capital.
The DBE bond, that has from a 500 to 100,000 birr coupon range, has been offered for a minimum price of 500 birr and does not have a maximum purchasing limit. Bonds with a maturity date of one to five years will have a 5.5 percent interest rate and for over five years the interest amount will be six percent.
Officials expect to collect about 200 million birr this fiscal year which ends this June 30. DBE plans to collect close to 11 billion birr from bond sales in the coming five years. This will cover about 38 percent of the bank budget to be disbursed for agricultural and related projects in the five year plan.
The rural public is the wide target of the bond sales, while the biggest amount of sale is expected to carry on in urban areas. According to DBE’s five year plan, it will release 28 billion birr in loan provisions for developmental projects.
Source: Capital
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