Zambian President expresses gratitude for support of the country’s first sovereign bond
By Nawa Mutumweno – President Michael Sata has expressed profound gratitude to the international investor community for the massive support for the country’s first sovereign bond.
This is testimony of the confidence placed in Zambia by financial institutions in the United States, Europe and Asia, resulting in the bond realisation of $750 million, exceeding the $500 million which was originally planned, according to a statement by President Sata’s special assistant for press and public relations George Chellah.
‘’The achievement of the first bond being oversubscribed establishes Zambia as a very credible investment destination and that our country has a vibrant future. This happy outcome is a credit to the people of Zambia who are the architects of unity, peace and stability that our development prospects are firmly anchored on,’’ the statement reads in part.
Meanwhile, Zambia’s external debt has risen to over $2 billion following Zambia’s largely successful Eurobond issue.
According to Ministry of Finance Acting Director for Investments and Debt Management, Fortune Kamusaki, the $750 million bond adds to the already existing $1.5 billion external debt.
He was speaking when he addressed journalists in Lusaka recently.
The external debt is mainly made up of concessional and non-concessional loans, he elaborated.
Zambia’s foreign debt stock remains highly sustainable and obtained a huge debt relief under the Highly Indebted Poor Countries (HIPC) initiative, he assured.
The Zambian government has been prudent in its borrowing and there is no risk that the country could slip back into a debt trap.
‘’ The foreign debt stock has been building up steadily from the time the country got debt relief under HIPC,’’ Dr. Kamusaki.
