US$1 Billion Bond is performing well–MoFNP

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The Ministry of Finance says the recently issued US$1 Billion Bond is performing well.

The Ministry has said the bond which was issued at a yield rate of 8.625 percent is performing above par and currently trading at 8.16 percent.

Secretary to the Treasury Fredson Yamba said the positive performance of Zambia’s Sovereign Bonds is 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 Zambia’s consistent and market friendly economic policies.

Mr Yamba said the private sector should leverage on the goodwill to get Zambia into a sustainable development trajectory by developing profitable alliances with players in the international community and growing economic empires which will generate more jobs and create wealth opportunities for people.

This is contained in a statement issued by Ministry of Finance Public Relations officer Chileshe Kandeta.

The statement further states that the yield for the US$750 Million Bond which was issued in September 2012 at a yield rate of 5.365 has strengthened over the past one month from a yield of 8.4 percent to the current 7.44 percent.

And the utilisation of the Bond shows that as at 31st March this year US$186 was allocated for the ZESCO Kafue Gorge Lower Power Project with a further US$69 Million going towards ZESCO Power Distribution Project.

Zambia Railways Limited received US$120 for the procurement of infrastructure rehabilitation materials, rolling stock, and acquisition of track rehabilitation and maintenance services while Development Bank of Zambia was allocated US$20 Million.

The Ministry of Health was allocated US$29 Million for modernisation of the University Teaching Hospital, Livingstone General Hospital, Kitwe General Hospital and Nola General Hospital.

The road sector was allocated US$310 Million of which US$145 has been used to repay funds borrowed by government for the Formula One Lusaka Urban Roads prior to the 2011 general elections.

The balance of US$165 Million is for on-going various road maintenance and upgrading works.

Meanwhile the Ministry of Finance last Friday released K168 Million grants to various institutions of government to facilitate their operations and efficient programme implementation.

The treasury further released K84 million for road maintenance, rehabilitation and construction while K20.7 Million was released to the Ministry of Local Government and Housing for water and sanitation programmes.

K166 was released for salaries for Civil servants in various government institutions for compensation and awards and for emoluments for personnel in Zambia’s Missions abroad.