LUSAKA, June 1 – Zambia has launched an offer to buy back part of its $1.36 billion bond due in 2053, as the country continues efforts to improve its debt profile and strengthen its position in international financial markets.
The government said the bond repurchase will be financed through a new $600 million loan from the African Development Bank, alongside additional funding from its own resources. According to the finance ministry, the transaction is intended to simplify Zambia’s debt structure and better manage future repayment obligations.
Officials added that the move forms part of broader efforts to improve debt sustainability and could help support the country’s eventual return to international capital markets.
The bond was created in 2023 as part of Zambia’s debt restructuring programme and includes step-up interest payments that increase over time.
Zambia became the first African country to default on its external debt during the COVID-19 pandemic in 2020. Since then, the government has worked through a lengthy restructuring process under the G20 Common Framework, reaching agreements with most of its creditors.
Investor response to the latest announcement was positive, with the price of the 2053 bond rising by more than 4.5 cents to about 77.9 cents on the dollar.
The proposed buyback marks another step in Zambia’s efforts to strengthen its public finances and reduce pressure from long-term debt obligations.
