Zambia has enhanced its offer to repurchase its $1.36 billion Eurobond due in 2053, increasing incentives for bondholders in a bid to secure stronger participation and reduce the country’s long-term debt burden, as reported by Investing.com. The move comes as the government seeks to capitalize on improved economic conditions following its landmark debt restructuring completed in 2024.
Under the revised terms, Zambia extended the early participation deadline and added an extra $65 million incentive pool for investors who tender their bonds before the new deadline. The additional payment is being distributed on a pro-rata basis, boosting the value of the offer to encourage greater bondholder participation.
The buyback targets Zambia’s $1.36 billion Fixed Rate Step-Up Amortising Notes due in 2053 and is being financed through a $600 million loan from the African Development Bank alongside government resources. Officials say the operation is designed to lower future debt-servicing costs and create additional fiscal space for infrastructure, energy, and economic development priorities.
The transaction is particularly significant because the bonds carry provisions that could substantially increase coupon payments if Zambia meets certain debt sustainability benchmarks under its restructuring agreement. Analysts say the government’s willingness to improve the offer suggests confidence in the country’s economic recovery and reflects a proactive effort to manage future liabilities before borrowing costs potentially rise.
