Zambia borrows $750 million through Euro bond, thanks to MMD

Riding on good ecomonic policies of the MMD  in 2011, Zambia has sold its debut $750 million international bond to help fund its budget and invest in infrastructure.

The Euro bond was initiated by the MMD. But the Euro bond was almost spoiled by the PF due to its lack of policy direction and the political inotolerance. This prompted Finance Deputy minister Miles Sampa to travel to Europe to go and plead for buyers. He is still in Europe.

It also must be remembered that this is a loan which Zambia must repay in future.

The 10-year, dollar-denominated debt went on sale today at a final coupon of 5.625 percent, said Sashi Kumi, a credit and fixed-income trader at Nedbank Capital’s London-based unit, and according to a term sheet obtained by Bloomberg.

Deputy Finance MinisterMiles Sampa didn’t reply to two e-mails seeking comment.

“Demand looks very good,” Kumi said in e-mailed reply to questions. “The Africa story, in general, is carrying favor with investors. People see great growth on the continent.”

Zambia joins other sub-Saharan African nations such as Nigeria, Ghana, Gabon, Senegal and Namibia that have sold international debt.

 

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