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Zambia’s dollar bonds strengthen following country’s conclusive restructuring of $3.5 billion Eurobonds debt


Zambia’s international dollar bonds have reportedly improved following a conclusive deal to restructure its US$3.5 billion Eurobond debt with the External Bondholder Steering Committee.

Zambia’s dollar bonds had strengthened as the country worked to finalise a long-delayed debt restructuring, with Moody’s investors saying a deal would be a catalyst for broader economic reforms.

On Monday, Zambia was reported to have agreed a deal with External Bondholder Steering Committee to restructure its over US$3 billion debt.

This is according to a Bloomberg report seen by Zambia Monitor on Tuesday.

The price of Zambia’s debt due 2027 gained for a sixth day to the highest since May 2022, rising 0.1 cents on the dollar to 72.637 cents at 12:09 pm in London on Monday.

Parties to negotiations that started last week expected to conclude a deal for $3 billion of global bonds within days which had been achieved.

Read more : economic-recovery-back-on-track-hichilema-says-as-zambia-bondholders-agree-to-restructure-3-billion-eurobond-debt

The announcement was made by the Committee in a statement and confirmed by President Hakainde Hichilema on his official Facebook handle on Monday.

This agreement followed the government’s confirmation that the terms of the 2024 Agreement were compatible with Zambia’s Official Creditor Committee assessment of comparability of treatment and the International Monetary Fund (IMF) programme parameters under the Second Review framework.

The statement showed that prompt implementation of a debt restructuring agreement with bondholders was not only in Zambia’s interests, but the wider creditor community as a whole.

A spokesperson on behalf of the Committee said: “We are pleased to have finally reached a definitive and conclusive agreement with the government that is supported by all stakeholders and which will in due course, restore full international capital markets access to Zambia and encourage long-term investment in the country, to the benefit of all Zambians.”

The proposed restructuring terms set out in the 2024 Agreement were based on the same structure as the November 2023 AIP.

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