AFDB planning bond issue with Zambia to finance infrastructures
The African Development Bank (AFDB) is working with Zambia on the launch of a bond in Zambia, which will aim to finance the development of the country's infrastructure and stimulate economic growth.Kwesige Freddie, the bank representative in Zambia, told the Times of Zambia that the institution is in talks with the Zambian government to determine the best way for the bank to issue bonds in local currency.
"The AFDB is looking for ways to issue infrastructure bonds, as did the Central Bank of Kenya, and is collaborating with the government," he said, adding that the bank has commissioned a study to determine the best way to issue these bonds successfully.
According to Xinhua news agency, the Zambian government has recently received a $750 million (€583,5 million) investment from Europe through a bond to finance infrastructure in the transport and energy sectors.
The AFDB believes the government should now look at mobilising regional resources by issuing more bonds in local currency.
Last year, Zambia received a B+ from Fitch and Standard and Poor's and issued its first sovereign bonds a few months ago to finance the country's infrastructure.
The success of these bonds is mainly due to the country's relatively strong economy and a GDP growth expected to be over six per cent.