Zambia to issue $500 million bond

Zambia to issue $500 million bond

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GOVERNMENT is expected to issue a US$500 million sovereign bond in the first half of this year.

The bond, which will enable Government undertake infrastructure development projects, comes in the wake of the country’s B+ credit rating by Standards & Poor and Fitch last year.

Secretary to the Treasury Fredson Yamba said Government is currently working on modalities of issuing the US$500 million bond and is expected to fanalise the process within the first quarter of this year.

Mr Yamba said Government is engaging with local and international financial institutions and international finance advisors on how best the bond will be issued.

“Government wants to take every precaution to ensure that we obtain funds at a fair price. In this regard, preparations are underway and we are moving programmatically and are actively consulting experts from various organisations on how best to undertake the process,” he said.

Mr Yamba said this in an interview in Lusaka on Friday.

He said Government has so far held discussions with local commercial banks, including Zanaco, Citibank, Stanbic Bank and Standard Chartered Bank.

Mr Yamba said he is optimistic that the bond will be issued as soon as the process is finalised.

Government announced that it will this year a issue 10-year bond, saying the issuance of the bond will establish a pricing benchmark for future bond issuance by both the private and public sector.

It will further enhance the country’s visibility as a favourable investment destination./Daily Mail

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