Ethiopia's Eurobonds plunged to a fresh record after the Horn of Africa nation declared a state of emergency as rebel fighters advanced toward the capital city.
The yield on the country's $1 billion of securities due 2024 jumped 24 basis points to 14.97% by 8:16 a.m. in London. The rate on the debt has more than doubled since the Tigray conflict erupted on Nov. 3, 2020. Moody's Investors Service cut the nation's credit rating in October for a second time since May to Caa2, citing a delay in the nation's planned debt restructuring and the escalating civil war.
Fighting between the federal army and Tigray People's Liberation Front has escalated since the start of October, with the rebels advancing steadily south.
Ethiopia Declares State of Emergency to Stymie Rebel Advance
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