Zambia has recorded a major breakthrough in its debt restructuring programme after investors holding the country’s 2053 Eurobond overwhelmingly agreed to sell the debt back to government.
In a statement Secretary to the Treasury Felix Nkulukusa says that bondholders representing 97.85 percent of the US$1.365 billion bond had accepted the cash tender offer by the early deadline of June 9.
A bond buyback is when a government repurchases its debt from investors before the agreed maturity date. In this case, Zambia is seeking to retire part of its long-term external debt early instead of continuing to service it until 2053.
The strong participation means investors still have confidence in Zambia’s economic recovery efforts despite the country previously defaulting on its debt in 2020.
Economists say the move could help Zambia reduce future interest costs, ease pressure on public finances, and improve debt sustainability over the long term.
The transaction is also seen as part of broader efforts by authorities to clean up the country’s debt portfolio following the restructuring agreements reached with official and private creditors.
The announcement was made through the London Stock Exchange.
By Rachel Mumba
