The Zambian Government has launched a US$1bn 10-year Eurobond at a final yield of 8.625%.
Reuters reports citing sources that at 8.625%, the yield is at the tight end of revised guidance of 8.75% area (plus or minus 12.5 bases point).
Demand for the deal is over US$4.25bn.
The bond was oversubscribed by US$4.25bn, much lower than last time, according to Government sources.
Zambia began marketing the bond at 8.75%-8.875% earlier on Monday.
Since this is a 10 year bond, Zambia will be paying interest of 8.625% or $86m per year for the next 10 years and the country will then need to pay back the final $1bn in 2024.
Zambia is currently paying around $42m interest annually on its first Eurobond of $750m. It is due to pay back the full $750m in 2022.
Barclays and Deutsche Bank are the lead managers.
In September 2012, Zambia launched its debut $750 million with a coupon rate of 5.375 percent.