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Capital market gets boost, as CEC’s US$54 million green bond fully subscribed


The first US$54 million portion of the green bond raised by the Copperbelt Energy Corporation (CEC) has fully been subscribed as of December 28, 2023, indicating high level of confidence in Zambia’s capital markets.

CEC on December 5, 2023 announced the registration of its US$200 million green bond on the side-lines of the Conference of Parties (COP)28 in Dubai.

The Finance and National Planning Minister, Situmbeko Musokotwane, announced at the CEC green bond listing ceremony in Lusaka on Friday that the first US$54 million portion had fully been subscribed.

Musokotwane said CEC had paved the way for many other institutions to raise green finance for their businesses and contribute to the growth of the market and the sector at large.

He, therefore, urged other companies and investors to emulate CEC and take full advantage of Zambia’s business-friendly capital market rules to raise investment funds.

Read more: Copperbelt Energy Corporation registers $200 million green bond, targets 200MW of renewable energy

“The step taken by CEC to raise capital for its further investment in energy generation on our capital markets through its green bond is commendable. This move supports government’s commitment to climate mitigation while also focussing on building and developing key sectors of the economy.

“I am pleased to note that funding raised from CEC’S US$200 million green bond, will be directed towards solar energy generation investments of about 200megawatts,” he said.

Speaking earlier, CEC Chief Board Chairman, London Mwafulilwa, explained that subscription to the bond opened in December of 2023, saying that the initial tranche of the green bond was made as a private placement.

“However, as we issue the subsequent tranches, we look forward to extending the opportunity for other investors to participate in a green investment.

“We are certainly thrilled to be the first company to issue a green bond in Zambia, as it is not only a pivotal moment for CEC and our subsidiary, CEC renewables, but for Zambia and its capital market,” Mwafulilwa said.

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