Zambia has successfully issued a 1.25 billion United States dollars 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.