LUSAKA, June 9 – Zambia has secured sufficient support from bondholders to proceed with the full repurchase of its $1.36 billion Eurobond due in 2053, marking another significant step in the country’s efforts to strengthen its public finances following years of debt restructuring.
According to Bloomberg reports, participation in the tender offer exceeded the critical 75% threshold required for the government to complete the buyback and compel remaining holders to participate.
The successful outcome follows Zambia’s decision to improve the terms of the offer in an effort to attract support from investors who had previously resisted the transaction.
Under the revised terms, participating bondholders will receive approximately 84.35 cents on the dollar, with the final payout adjusting lower as participation levels approach full acceptance.
The bond targeted in the buyback was created in 2024 as part of Zambia’s broader debt restructuring programme and carries step-up interest payments that increase over time.
To encourage participation, the government enhanced the offer by allocating an additional $65 million to investors who tendered their bonds before an extended early participation deadline.
Authorities described the revised proposal as their “best and final” offer.
The transaction represents another milestone in Zambia’s ongoing efforts to restore debt sustainability after becoming the first African country to default on sovereign debt during the COVID-19 pandemic in 2020.
Since then, the southern African nation has undertaken one of the most closely watched debt restructuring processes under the G20 Common Framework initiative.
The restructuring involved lengthy negotiations with bilateral lenders, commercial creditors and bondholders aimed at reducing debt servicing pressures and restoring investor confidence.
Successful completion of the buyback would help Zambia simplify its debt profile and reduce future financing risks associated with the long-dated bond.
The move also signals continued progress in the country’s efforts to rebuild credibility in international capital markets following years of financial stress.
Zambia has been pursuing broader economic reforms alongside debt restructuring, supported by international financial institutions and development partners.
The country is also seeking to leverage its growing copper sector and improved macroeconomic stability to attract investment and accelerate economic growth.
The latest bond transaction highlights Zambia’s determination to strengthen its fiscal position while completing one of Africa’s most significant sovereign debt restructuring exercises in recent years.
