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Zambia has secured overwhelming support from bondholders in its US$1.34 billion debt buyback programme, marking a significant milestone in the country’s ongoing debt restructuring efforts.
According to early results released by the Ministry of Finance and National Planning, bondholders tendered notes worth approximately US$1.335 billion by the June 9 early participation deadline, representing 97.85 percent of the outstanding US$1.365 billion Fixed Rate Step-Up Amortising Notes due in 2053.
The high participation rate signals strong investor confidence in Zambia’s debt management strategy and places the government in a strong position to complete one of its most significant liability management exercises.
In a statement issued on Wednesday evening, the Ministry said the cash tender offer, launched on May 29, invited eligible bondholders to sell their notes back to the government before maturity, subject to financing conditions.
“By the Early Participation Deadline of 9th June 2026, we had received valid tenders totaling US$1.335 billion, representing 97.85 percent of the total outstanding notes, demonstrating broad investor participation and support for the liability management exercise,” the Ministry said.
The Ministry noted that the transaction formed part of Zambia’s broader debt restructuring programme aimed at improving debt sustainability and reducing long-term debt obligations.
Read more: Bondholders oppose Zambia’s US$1.36 billion bond buyback offer
Meanwhile, Access Bank Group, in its latest market commentary, said Zambia had announced that it would accept all US$1.34 billion in principal amount of its 2053 Fixed Rate Step-Up Amortising Notes that were validly tendered under the buyback offer.
The bank said investors who participated in the transaction would receive approximately US$828.68 for every US$1,000 of principal tendered, in addition to accrued interest.
According to the market commentary, the total amount accepted under the offer effectively covers nearly the entire outstanding bond stock.
Access Bank noted that while the offer remained open until 5:00 p.m. Eastern Time on June 11, participation has already exceeded the threshold required for a successful transaction.
The strong response from investors follows Zambia’s decision to provide a US$65 million incentive package, commonly referred to as a “sweetener”, to encourage participation in the buyback programme.
Economic analysts have described the development as another important step in Zambia’s efforts to restore debt sustainability following years of debt distress and prolonged negotiations with creditors.
The successful buyback is also expected to support the government’s broader strategy of reducing future debt servicing costs while improving fiscal stability and investor confidence in the country’s economic recovery programme.
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