Govt successfully issues $1.25 billion Eurobond

Zambia has successfully issued a US$1.25 billion Eurobond for infrastructure development.

The Eurobond, with a coupon rate of 8.97 percent, has an eleven year average life repayments in 2025,2026 and 2027.
The bond issuance was in excess of two times oversubscribed.

Finance Deputy Minister Christopher Mvunga, who led the Zambian delegation, said this success demonstrates confidence that the international financial community has in the leadership of President Edgar Lungu and the Patriotic Front (PF) Government.

Mr Mvunga says the funds will be used in infrastructure related projects in the area of road, energy, education, health, water and transport sectors in order to better the lives of the Zambian people.

The Minister emphasized that the Government would strictly adhere to the programmed use of the resources.
Mr. Mvunga said this was an opportune time for Zambia to issue bonds given the anticipated rising interest cost in the international markets in the near future.

Despite a challenging capital markets environment arising from global economic uncertainties, Zambia’s bond issue was met with high demand from international investors allowing the country to lock-in a competitive interest rate.

The Zambian delegation met over 60 fund managers during the five-day road show in the United Kingdom and the United States of America.

Mr. Mvunga committed that going forward, Zambia will conduct annual investor meetings to ensure transparent communication of the performance of the economy.

The delegation included the Secretary to the Treasury Fredson Yamba, Special Assistant to the President (Project Monitoring and Implementation) Lucky Mulusa, Permanent Secretary (Budget) Pamela Kabamba, the Deputy Governor of the Bank of Zambia (Operations) Bwalya Ng’andu and senior Government officials from the Ministry of Finance and the Bank of Zambia.

This is contained in a statement issued by Chibaula Silwamba the first Secretary for press and public relations at Zambia’s permanent mission to the United Nations.