Zambia to launch bond debt in 2012
Zambia will issue $500 million (€396 million) in sovereign bonds in 2012, it was announced last weekend.Zambia will issue $500 million (€396 million) in sovereign bonds in 2012, it was announced last weekend.
The country's Finance Minister Alexander Chikwanda said on Sunday (November 13th) that these bonds will be issued for ten years, Xinhua news agency reports.
According to Mr Chikwanda, this bond debt will boost private investments and ease the pressure on national savings.
It will also "establish a pricing benchmark for future bond issuance by both the private and public sectors" and enhance the visibility of the country as a favourable destination for investment, added the minister.
This is Zambia's first bond debt and the nation has just obtained a B+ rating by two credit rating agencies.
It was oversubscribed five-and-a-half times and demonstrated the appetite for liquid African paper, Head of Debt Capital Markets at Standard Bank Florian von Hartig told Reuters.
He said 2012 is likely to be an active year for African issuance, as "economies in Africa have been doing very well at times when the so-called developed world has experienced zero growth or even recession".