Revised CATS Procedure Dec.20161

COMMERCIAL BANK OF ETHIOPIA December 1, 2016
f) For Bonds mature from 1-5 years, the Bond buyer can redeem bond value
at least after one year from the issuance date, i.e. the GERD bond buyers
cannot redeem the principal value before one year. Furthermore, the
GERD bonds which are redeemed after one year but before maturity date
are subject to penalty charge on the accrued interest.
g) For the GERD bonds maturing above 5 years, the bond buyer can redeem
bond value at least after three years from the issuance date, i.e. bond
buyers cannot redeem the principal value before three years.
Furthermore, the GERD bonds which are redeemed after three years but
before maturity date are subject to penalty charge on the accrued
interest;
h) Shall have Stamp of the Ministry of Finance and Economic Cooperation
(MoFEC) and signature of the Minster (MoFEC);
9.17.2 General issues and Conditions in GERD bond operation
a) The minimum value of bond to be purchased is birr 50 in Ethiopia and
birr 500 outside Ethiopia. However there is no maximum purchasing
limit.
b) Lost and Mutilated bond coupons after their sale should not to be
replaced with other coupons; but the bond buyer shall be provided with
equivalent evidence/certificate after verifying the authenticity of the loss
or mutilation by bond selling branch..
c) Interest shall be calculated starting from the issue date and paid semiannually
on June 30, and December 31.
d) A bond holder can redeem the principal amount and collect the interest
earned on the bond from the selling CBE branch.
e) Principal redemption date is at the end of agreed maturity date and shall
be redeemed by the selling Branch.
CATS Procedure | 157