International Finance Corporation boosts Zambia’s capital markets with issuance of $10 million bond


The International Finance Corporation (IFC) has issued a K193.2 million bond to support the development of Zambia’s domestic capital markets and increase access to local currency finance.

The five-year amortising “Zambezi” bond which is equivalent to approximately US$10 million was oversubscribed.

This was issued as a floating rate note, paying a coupon based on the 182-day Zambian Treasury bill yield minus 50 basis points.

According to a statement issued on Thursday, this was IFC’s second kwacha-denominated bond after the corporation placed the first bond issued by a non-resident issuer in Zambia’s domestic capital markets in 2013.

The issuance was the corporation’s first floating rate note in Zambian kwacha and forms part of IFC’s registered Medium Term Note program in Zambia as well as IFC’s Pan-African Domestic Medium-Term Note Program (PADMTN).

IFC Vice President and Treasurer, Treasury & Mobilisation, John Gandolfo, in his comment on the development said the institution was happy to be back in the Zambian market.

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“Deep and liquid domestic capital markets are essential to expanding access to much-needed local currency finance for key sectors in the economy.

“Scaling up local currency financing is a key priority for IFC and we’re delighted to be back in the Zambian market,” Gandolfo said.

Absa Bank Zambia was the lead arranger and First National Bank Limited the co-arranger for this issuance.

Jason Quinn, Absa Group Chief Financial Officer on his comment, said the bank took pride in its commitment to continue to play a role in promoting and developing access to capital markets for our clients in Zambia and across the African continent.

“The successful bond issuance is a testament to the credit quality of the issuing entity, IFC. This transaction also demonstrates the critical role that the private sector plays in helping the country’s capital markets and driving economic growth,” Quinn said.

IFC’s work in Zambia is focused on promoting sustainable private sector development by improving the investment climate, supporting small businesses and proactively engaging in the development of key sectors such as infrastructure, agribusiness and financial services.

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