Ethiopia’s electric utility has agreed to pay nearly $6.5m to settle charges that it violated US securities laws by failing to register bonds it offered and sold to US residents of Ethiopian descent.

According to the US Securities and Exchange Commission (SEC), Ethiopian Electric Power (EEP) conducted the unregistered bond offering to help finance the construction of a hydroelectric dam on the Abay River in Ethiopia. 

EEP held a series of public road shows in major cities across the US and marketed the bonds on the website of the US Embassy of Ethiopia as well as through radio and television advertising aimed at Ethiopians living in the US. 

EEP raised approximately $5.8m from more than 3,100 US residents from 2011 to 2014 without ever registering the bond offering with the SEC. 

“Foreign governments are welcome to raise money in the US capital markets so long as they comply with the federal securities laws, including registration provisions designed to ensure that investors receive important information about prospective investments,” said Stephen L. Cohen, Associate Director of the SEC’s Division of Enforcement. 

“This settlement ensures that investors get all of their money back plus interest,” he added.

The distribution of money back to investors is subject to the SEC’s review and approval. 

Investors seeking more information should contact the administrator of the distribution, Gilardi & Co.