ZAMBIA SECURES 97.85% PARTICIPATION IN US$1.36 BILLION BOND BUYBACK
The Government of Zambia has announced a major milestone in its ongoing debt management programme after securing a 97.85% participation rate in the buyback of its US$1.365 billion Fixed Rate Step-Up Amortising Notes due in 2053.
According to the Ministry of Finance and National Planning, bondholders tendered approximately US$1.335 billion worth of notes by the early participation deadline of June 9, 2026, demonstrating strong investor confidence and support for Zambia’s debt restructuring efforts.
Key points
* Zambia launched the bond buyback offer on 29 May 2026.
* Eligible bondholders were invited to sell their bonds back to the government before maturity.
* By the early participation deadline of 9 June 2026, bondholders had tendered approximately US$1.335 billion, representing 97.85% of the outstanding notes.
* The government described this as strong investor participation and support for its debt-management exercise.
* The buyback is part of Zambia’s broader debt restructuring strategy aimed at improving debt sustainability and reducing long-term debt obligations.
Why it matters
A participation rate of 97.85% is very high and suggests that most bondholders were willing to participate in the transaction. This can help Zambia:
* Reduce future debt-servicing pressures.
* Simplify management of its debt portfolio.
* Support ongoing debt-restructuring efforts.
* Improve long-term fiscal sustainability.
And yet one Mr. Emmanuel “Goebbels” Mwamba would have us believe the deal had been rejected by the bond holders.
Mr. Mwamba how do you debunk this statement? Imagine 98% buying in on the deal!!