Development by Kaloba: Zesco seeks $2 billion from U.K., U.S. lenders

Development by Kaloba: Zesco seeks $2 billion from U.K., U.S. lenders

Zesco Ltd has sent managers to the U.K. and the U.S. in a bid to raise as much as $2 billion in debt from investors there, Managing Director Cyprian Chitundu said, according to Bloombeurg.

Standard Bank Ltd. (STAND) is advising the company, which met investors in London,Boston and New York, Chitundu said in an interview on Nov. 29 in Livingstone.

“We are probably talking $1 billion, probably even $2 billion,” Chitundu said at the Zambia International Investment Forum.

Zesco plans to spend on average $1 billion a year over the next five years as it seeks to end a power shortage that has led to blackouts across Africa’s biggest copper producer, preventing the mining industry from gaining the full benefit of higher metals prices, with copper rising 6.8 percent in the third quarter.

Zesco is also considering raising finance through a Eurobond, similar to the $750 million raised by the government in September, he said.

Zambia’s kwacha has declined 3.8 percent against the dollar since June 30, trading at 5,223 by 3:45 p.m. in Lusaka on Nov. 30.

Zesco’s management team has already visited London, talked to investors in Boston on Nov. 29, and ended with meetings in New York on Nov. 30, Chitundu said.

The company also plans to list on the Lusaka Stock Exchange within two years, he said.

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