International Finance Corporation (IFC) lists maiden bond in Zambia

Sovereign Bond
Sovereign Bond
THE International Finance Corporation (IFC) has listed its first ever bond under the Pan-African Domestic Medium Term- Note programme in Zambia.

The Zambezi bond, as it is called, is the first local currency bond issued by a non-resident in Zambia and raised K150 million to support IFC’s private sector development lending programme in the country.
The Pan-African bond programme currently includes Botswana, Ghana, Kenya, Namibia, Nigeria, Rwanda, South Africa, Uganda and Zambia.
Speaking during the listing ceremony at the Lusaka Stock Exchange (LuSE) on Thursday, IFC vice-president and treasurer Jingdong Hua said the IFC Zambezi bond is a landmark transaction for IFC and Zambia.
“As the first bond issued under the IFC Pan-African bond programme, we hope that it will promote greater focus on capital market development in the region,” he said.
In July this year, IFC received approval from Government to set the programme in Zambia under the Pan-African bond programme, which can issue bonds of up to K2.5 billion (about US$460 million).
Speaking earlier, Minister of Finance Alexander Chikwanda said Government is delighted that IFC has borrowed internally from Zambia and is using the proceeds to foster business development and growth.
In a speech ready on his behalf by Secretary to the Treasury Fredson Yamba, Mr Chikwanda said Government is committed to making the capital market and the wider financial sector more efficient, stable and facilitative to help achieve the development objectives.
And, Bank of Zambia Governor Michael Gondwe said IFC’s decision to include Zambia under the Pan-African bond programme is partly to support the country’s quest to build a vibrant financial and capital market.
Dr Gondwe said capital markets not only play a complementary role in the financial markets alongside the banking sector, but also play a competing and regulatory role to ensure interest rates are properly managed.