Zambia External Bondholder Steering Committee Reaches Agreement with Zambia on Debt Restructuring
US and Europe, March 25, 2024
The Zambia External Bondholder Steering Committee (the “Committee”) is pleased to announce that it has reached
a conclusive agreement (the “2024 Agreement”) with the Government of Zambia (the “Government”) on a
restructuring of Zambia’s (i) US$750,000,000 5.375 per cent. Notes due 2022, (ii) US$1,000,000,000 8.500 per
cent. Notes due 2024 and (iii) US$1,250,000,000 8.970 per cent. Amortising Notes due 2027 (collectively the
“Eurobonds”).
This agreement follows the Government’s confirmation that the terms of the 2024 Agreement are compatible with
Zambia’s Official Creditor Committee (the “OCC”) assessment of comparability of treatment and the IMF’s
program parameters under the Second Review framework.
Since November 2023 when the OCC determined that the previous agreement-in-principle reached with the
Government (the “November 2023 AIP”) did not meet the requirements of the comparability of treatment
provisions set out in the memorandum of understanding (“MOU”), the Committee has continued to support the
Government’s efforts to pursue a restructuring on terms close to those of the November 2023 AIP, recognising that
some adjustments were required as that agreement was predicated on implementation of a restructuring before 31
December 2023.
While the 2024 Agreement provides some further debt relief beyond that provided for in the November 2023 AIP,
these additional concessions will allow for the-standing default on the Eurobonds to be cured, will support the
restoration of Zambia’s macro-economic and debt sustainability in the context of the IMF-financed program, and
were required to ensure the support of all key stakeholders including the IMF and the OCC in a timely manner.
Prompt implementation of a debt restructuring agreement with bondholders is not only in Zambia’s interests, but
the wider creditor community as a whole.
The proposed restructuring terms set out in the 2024 Agreement are based on the same structure as the November
2023 AIP. Two new Eurobonds (further described as Bond A and Bond B in the Government’s press release) will
be issued which provide future debt relief commensurate with Zambia’s economic progress in the next few years.
While the 2024 Agreement requires both additional debt reduction and net present value relief compared to the
restructuring terms agreed pursuant to the November 2023 AIP, it also includes enhanced repayment terms and
higher coupons on Bond B, in the event that Zambia’s debt carrying capacity, as assessed by the IMF and World
Bank’s Composite Indicator, moves to medium from weak or Zambia continues to meet or exceeds current IMF
projections as measured by exports of goods, services and fiscal revenues measured in US Dollars. The 2024
Agreement also includes agreement on certain non-financial terms, including a most favoured creditor clause that
will ensure that certain other creditors do not receive a better recovery in the restructuring on net present value
terms, a loss reinstatement clause if Zambia were to default during the term of the IMF program, and certain ongoing
information covenants for Zambia.
The Committee appreciates the collaborative and transparent discussions with the Government that have allowed
for this conclusive agreement to be reached.
A spokesperson on behalf of the Committee said: “We are pleased to have finally reached a definitive and
conclusive agreement with the Government that is supported by all stakeholders and which will, in due course,
restore full international capital markets access to Zambia and encourage long-term investment in the country, to
the benefit of all Zambians.”
The key elements of the 2024 Agreement are contained in the Government’s press release. Implementation of the
2024 Agreement is conditional on mutual agreement on deal documentation, and the objective is to fully implement
the agreement as promptly as feasible.
The Committee encourages all holders of the Eurobonds to carefully consider the terms of the Government’s
prospective offer in relation to the 2024 Agreement and to make their own independent appraisal of the merits and
risks of participation.
Members of the Committee include the following asset managers (acting either directly or on behalf of funds or
other accounts they manage): Amia Capital LLP; Amundi (UK) Limited; Farallon Capital Management, LLC;
Greylock Capital Management, LLC; RBC BlueBay Asset Management.
The Creditor Committee is being advised by Newstate Partners and Weil Gotshal & Manges (London) LLP
Questions can be directed to:
Job weldone your excellency. If God is with us who can be against us. May Zambia thrive during this period.
Me I will clap when cost of living gets to the level at which he found it. Or when his other promises start being fulfilled.
I have learnt never to get excited with what this one says. Too much hot air and too many lies. Kaya.
You were clapping not knowing we had a fake economy based on kali a. It’s typical life if you borrow and don’t live up to loan terms. Dependants don’t understand loans.
Me I will clap when cost of living gets to the level at which he found it. Or when his other promises start being fulfilled.
I have learnt never to get excited with what this one says. Too much hot air and too many lies.
There are people who even if a man or woman raised from the dead bore witness to their manifest schyopedity, would argue against that witness.
Congratuleshen abena Indigo fimo fimo.
Iwe tekanya.
Trust a conman at your own peril.
You really think a leopard can change its spots overnight?
If debt will have to be paid at another time them the whole process is a scam, there is no consideration for the unforeseen in the unforeseable future, how can you enter into such a serious debt trap hoping twenty years from now things will be okay.
Twenty years for a country is too short a period.
Kindly embrace peter sinkambas great idea many countries have reaped and benefited from his great idea including America.
If you listened to HH’s presser he stated that all this is being done to reduce the repayment instalments by spreding them to a future date. The instalments were so large they were unsustainable. We basically could not afford making the large instalments because we were not generating enough to make the payments.
Whereas in the West wealth circulates within the family as the current generation inherits wealth from dying parents and dead grandparents, in Africa it seems to be debt and poverty that comes to be inherited. The postponement of Zambias debt means future generations will have to pay for the current debt and inevitably inherit present-day poverty.
In the first place, who wrapped us with this Python around our neck which the Snake Charmer is attempting to unwrap around our bodies?
Dr. Mulenga Kaoma,
These praise singers do not think. At all.
The are busy stealing our gold and sulligate instead of paying off the debt. Soon, they will be coming with Boeing 747 jets to come smuggle our gold. The new helipad or the KKIA presidential parking slot is no longer big enough.
Indigo Tyrol
Indeed, if we cannot take control of our mineral wealth in the form of copper, cobalt, gold, sugilite and emeralds, most of which are currently fetching good prices on the international market, then what are we going to use in future to pay for our debts? I ask this question given the rate at which we are giving away our mineral resources to foreigners and taking into account the fact that minerals are wasting assets that will not be with us forever. Are we not simply passing on poverty to future generations?
I agree with you Dr. Kaoma.
The curse of the African is to only think about the present.
When campaigning to be elected, he sounded like he had answers to our problems, but in truth, he is only interested in giving our minerals away to his foreign LGBT white masters, and getting filthy rich himself as if he is not already rich via dubious immoral ways.
Vote very wisely in 2026.
Im really thinking why did PF fail to pay im the first place