US$750 million Eurobond picks up steam – Fredson Yamba

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Fredson Yamba
Fredson Yamba

THE Ministry of Finance has said the US$750 million Eurobond issued in September, 2012 at a rate of 5.365 per cent has strengthened over the past one month from a yield of 8.4 per cent to 7.44 per cent currently.
Secretary to the Treasury Fredson Yamba said the recently issued $1 billion bond was currently performing above par and currently trading at 8.16 per cent from a yielding rate of 8.625 per cent during its issuance.
Mr Yamba said this in a statement issued by Ministry of Finance public relations officer, Chileshe Kandeta in Lusaka yesterday, adding that the yield rates fluctuated according to market conditions.
He said as at March 31, this year, the $750 million bond which was due in 2022, had been channelled to expansion works at the Kafue Gorge Lower power project, which received, $186 million, power distribution exercise was allocated $69 million.
The Zambia Railways Limited (ZRL) received $120 million, while the Development Bank of Zambia (DBZ), the Ministry of Health and the road sector received $20 million, $29 million and $310 million respectively.
On the performance of the $1 billion bond, Mr Yamba said the good performance was a reflection of investor confidence in the country’s economic performance and in the economic management policies of the Government, as confirmed by the oversubscription of more than 430 per cent when the bond was issued this month.
He said the bond was due in 2024 and that its usage was principally targeted at the energy and transport sectors.
He said the positive performance of Zambia’s Sovereign Bonds was not only an important indicator of the international community’s discernment of the country’s political, social and economic stability, but also an endorsement of consistent and market friendly economic policies. TIMES OF ZAMBIA

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