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Alba Iulia
Thursday, November 26, 2020

Another Eurobond: Zambia launches US$1bn 10-year Eurobond

Headlines Another Eurobond: Zambia launches US$1bn 10-year Eurobond

kwacha

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.

73 COMMENTS

  1. Contracting loans that are just been stolen by this cabal of criminals. Those provinces that are benefitting from these loans should pay back the money.

    • PF you are now destroying this country beyond belief. You still have failed to effectively utilize the first $750m. Please Sata you cannot borrow your way into wealth or development. It does not work like that at all, recall you found more money in the reserve than this and you did not even develop with it. What you are doing is unfair to the next generation, even most of the PF leaders you are aware that you do not have more than 20 yrs on your clock, but please be realistic. There will be no debt forgiving for the next generation. You are enslaving the future generation. What kind of people are with no heart.

      People recall debt is money not earned, in other ways you will earn later to pay back, ten years from now it is not Sata in govt.

    • @janza kumbele
      he (mushota) is not just useless but hysterical because nick has abandoned him and does not want anymore back sides. he is venting his anger on the web

    • We can see that they have absolutely no clue on how to use this money for development. Their spending has been on a bloated Government, bye-elections, renaming airports and creating new districts, none of which will earn Zambia more money.

      Satas uncle is borrowing billions with completely no plan of how this debt will be repaid. They are not even capable of controlling expenditure as we have seen with unretired imprests, Satas salary increases, Kasebas unconstitutional payments and the first Eurobond that is unused and not properly accounted for.

      We have to IMPEACH Sata and his PF criminals NOW.

      They are traitors to Zambia. This is selling our Nation and unborn generations of Zambians into debt slavery. We cannot let these criminals get away Scott- free with this. It will kill…

    • Huh! Was just getting ready to go to bed but this news is something that has sickened me to my stomach. The country will be paying $128 million per year in interest until 2022 and then this will reduce to $84 million per year till 2024. If the first Eurobond was used wisely and in projects that are sustainable and help generate money to pay back the DEBT, then no one would be raising concerns. PF will not be there to pay back the DEBT!

    • There are conditions attached to that .Hard work is one of them and not being foolish but making wise judgement of situations.Bountifulness comes from embrassing reality that miracles are not a substitute to hardwork and productivity.Lets produce and contribute to the country and the world.Let us trade and not borrow from the traders.Let us exchange at fair deals.When we export,we then shall be lenders and not borrowers.

    • Serious! They brag that money from the first EuroBond is “sitting safe” (i.e. UNUSED!) so why borrow more and pay more interest when you can’t even use the first lot?

      What kind of “plan” is that? Truly, it sounds like USELESS money to me!

    • @ Spuds
      When they say “siting safe” it does not mean “unused”. It means siting safe in my accounts in a tax haven outside Zambia.

  2. Bonse mwebalesabaila apa tamukwete amano because you don`t know jack about this.Muleikalafye ngatamwishibe imwe bakampyanga.

  3. When the next president comes to power he will be giving us excuses like”we are not delivering as to your expectation because the previous govt left a lot of nkongole which we are busy paying back”the other disadvantage is that it will not have any chance to borrow like pf has.pf has sentenced zambians who are above the age 30yrs to poverty.I also foresee inflation going up and by the time all this will be happening,sata,chikwanda,guy scot(slave driver) will be dead while their children enjoying wealth left by their selfish fathers.the good news is that we are all going to be affected whether bemba or not.

  4. More money to go in this bloated gov’t’s expenditure. …they cheat you that it’s meant for infrastructure development yet they are borrowing to pay civil servants …I mean which developing country spends 12% of her GDP on salaries.
    I fear for our great children as these dinosaurs are spending for today!!

    Wake up people! !

    • i agree with 100%. This reckless borrowing is deliberate. Create lots of confusion for the next government and they will be kicked even before the 5 years is done. PF are SADISTS. I mean, poverty, unemployment, street kids, skyrocketing prices (especially mealie meal) etc are phenomenon that deliberately created by PF so that the remain relevant. cosmetic changes in 2015/2016 will not save PF from impending disaster and catastrophe

  5. I would rather we earned the funds we need than borrowing. Borrowed money sucks bad! We have copper and many other minerals, we have plenty of land, trees and rivers, we have cheap labour we have all it takes to make the money from our own means. We have the redources we need. What we have not deviced is the thinking pattern that can enable us make the money we are borrowing. Instead, we have gone the easy option, that of incurring debt. Debt can be good if there is no misuse, but given what we keep reading from Zambia Railways, bye elections, top heavy political leadership, etc the borrowed money will still be misused or misappropriated. Let us surely relook at made by fwebene and rely less on loans. Nevertheless, let us utilise borrowed funds productively.

    • Welcome Floyd Chitalu, I have followed your posts and I can surely see that your soft hand on the PF has now hardened. How are they going to turn this mess around? I think they are using mishmash policies and have now run out of ideas. Firstly, they suffocated the kwacha by flaunting it against renowned world currencies and it limped out of the arena badly bruised and was in the end a no contest. The downside of all this is that the kwacha will remain lame now against the major operators for a long time – read my 50 year credit crunch comment below. Food security is our only survival retreat now and as you note above, we have natural bodies of water around the country, vast arable land and cheap labour as in millions of unemployed youth who would jump at an opportunity to land a job.

    • Let us change the the ZNS (Zambia National Service) to ZNFSS (Zambia National Food Security Services) working in partnership with the private sector to secure farmlands. We can be a major exporter of food and agricultural produce not only to our neighbouring and hungry countries (which are all if not an exception of 2 or 3) and Europe. In turn, this will create a healthy nation and one that is in employment. An employed citizenry can then drive the economy and propel growth in the services industry such as banking, consumption of goods and services, housing boom, education and many more that depend on the cash flow fluidity of the general public. Let’s us diversify and only mine copper process into bars and store it and create an artificial shortage and then we can dictate the price.

  6. Welcoming the 50 year Credit Crunch in Zambia. Fasten your belts and condoms. This ride will be Xtremely bumpy and excruciatingly slow but self inflicted. Well done for ushering in the donchi kubeba kalindula jazz crooks. Fonko fonko, mulefonkoka napamala pala fonkoka. This is what it means by playing Russian Roulette with your votes. Chao, auwiedersehen, mucho trabajo pero poko diniero!!!!!

    • Don’t use complicated terms like “credit crunch” ,Sata will think its some kind of breakfast cereal.

    • The population of 14 million plus can not sustain an annual debt of $130million USD for the next four years when the levels of production in all sectors apart fom Mining are lamentably low. The population is too small to drive any major investors in both the formal and informal sectors because the buying power will not bring out expected yields. One option would be increase the market power by have more babies to cushion the debt. The larger the population the lesser tax burden. Otherwise ku kosa.

  7. But haven’t these people been following what happens to Greece Italy Spain and Portugal? this is suicide… We don’t have an EU to bail us out ka! I don’t think SA will play Germany when push come to shove… mwatwipaya!

  8. They have realized that they are going in 2016 so they want to leave a lot of mess for the incoming government. Like LP Mwanawasa rightly put it: “Zambians forget easily!” I am sure by the time the new government will be in place, people would have forgotten where the rot came from and blame the new government.

    • Just like they have forgotten the money that PF found in Government accounts put there by sensible economic management of MMD, and that the PF have now wasted on bye-elections and Satas salary!

      And now a USELESS F00L is telling us there is no money for the NEW CONSTITUTION that they promised us in 90 DAYS!

  9. Bembas are natural thieves and this cuts across their gender and age groups. We should not make the make the same mistake we made in 2011 otherwise this country will go bankrupt. These monkey eaters are shameless thieves. When left unchecked, a bemba can even steal blankets from his death bed. A bemba can steal anything, of any value, from anybody (even from himself) at any time for any reason because its in born.

    • @nemba whoever you were conceived through your father’s anus. Mind you we will keep on ruling you. I have lived among different tribes and I can tell you that I’m all tribes there are thieves. Kawala, thief, mpupu, etc from different tribes signifies that there thieves in all tribes. Besides some of you who boasts of high education are the worst white collar thieves. Most of the wanted persons for theft in the times of Zambia, daily mail or post are not even bembas. You will die of BP you ***** foo.l. As a matter of fact bembas are the most liked tribe because they are easy to interact with, they have prideness, they humble themselves and they can do any work and MAYBE for this reason God chooses them for presidency position. Go and insult your mother or father from your tribe I.di.ot.

    • @BBC you are a liar. Bembas are the most hated tribe in Zambia at the moment. Its just that you guys make up 43% of our country’s population that is why you seem to have a hand on everything but your days are numbered. We, from other tribes have learnt big lessons during the two years of PF’s government. You guys are mental retards who should never, never again be entrusted with the leadership of this country. You are not only cronic thieves who have no regard for tomorrow but are also shameless tribalists. Zambia would have been a better country without you. This country was doing fine during the time of Mwanawasa and RB. Anyway, 2016 is not far.

    • i thought tribalism was a Kenyan issue ONLY. Now i see why Afriica will always lag behind. hasty generalization is an element of a person with Kichwa Kikopo

  10. It is okay to borrow for infrastructure development. What is wrong is to borrow so that people can have subsidised maize. Once you eat, the next thing is to go to the toilet (Pit latrine). My only advice to the government is that they should give Zambians to construct things like roads or else they will be bumping money right back were it came from. The only catch is that they should only give contracts to qualified Engineers and not politicians or cadres pretending to be contractors.

  11. Keep in mind that the current roads under construction are way out over-priced, and they are not along the daily economic routes for our daily transportation needs. The main arteries for our goods remain the main roads in use and the railway system which is not being run to our best ability.

  12. Our Engineers should wake up from their slumber and assume their rightful place instead of just waiting to be employees or being appointed to this and that board or as minister. They should learn to combine efforts with fellow Engineers and come up with formidable companies instead of personalised tu ntembas. Each construction company to be taken seriously by government as well financiers should have at least a Mechanical Engineer , Civil Engineer and a Geomatic Engineer (Surveyor).

    • Engineers ain’t trained entrepreneurship at university. ..education just teaches you on how to be a good employee!!

    • Jay Jay. Engineers produce tangible things after hard thinking and hard work while entrepreneurs make money for doing nothing or talking their way through or through some kind of trick e.g Lawyers and economists. What we need most in Zambia at the moment are Engineers. After we have developed and there is nothing more to build like Germany or UK then we can allow other characters like musicians and other entertainers to do their thing.

    • @ Spartan the majority of billionaires who todays global firms didn’t go to university….what does it tell you?

    • Jay Jay. I don’t disagree with you about most billionaires not having been to university, but at least they are smart enough to use Engineers in most cases. All I am advocating for is that we should start using our own Engineers to build most of the basic infrastructure that we need, unless we are happy with the status quo of being modern day slaves. There is no rocket science in road construction. All you need is seriousness, dedication and close supervision by all stake holders particularly the government itself through various security wings.

  13. Debt trap,$750m,profiting more than $420m.thats puts Zambia as a good customer for kaloba.$1b,profits of $860m for the lender on a 10 year business.u mean as a country why should we give away $1,280m just like that,these pf guys are merciless.the biggest problem is they know their soil time is near so they will not witness the mass suffering.

  14. The lenders will be happy to make the loan available because they only care about the hefty millions of interest secured in future whether the money is stolen or misused now. PF is getting ready to bag whatever they can get from government funds because come elections, they will be kicked out of office. The sad part of everything is that no one is ever held accountable for anything in zambia and as a result people in government will continue to be irresponsible because they always get away with unforgiven crimes and in the end, its the zambian people who ultimately pay the price of no development and the eternal fire of poverty.

  15. Havent I asked the Government to go for a Big 15 or 20billion Dollar laon on this blog? Why are you borrowing as if there is a shortage of loans or have you a Limit? How much is your highest bet? The rate at which you are going by asking klein beetje klein beetje is not funny at all, as it will allow for huge amounts of interests! I know it’s not wrong to borrow but how many times can you go back? Ofcourse as much as possible untill such a time when the money lender threatens to auction that little beautiful sunny country!
    Speaking of which…… is there any one country that has managed to stay Debt free? Maybe Russia, this is a question for the bloggers on here as am now curious as hell!

    • Lets be serious here people…….If you get bored and cant read 140 words how are you going to read your constitution or is it just the nonsense of criticising without using ones head?

  16. One Hit Wonder, even if you sound like a dramatist. I think im in love with analysis of the problem at hand. Why shoud we continue borowing when 1. we do not even have a proper plan or budget for the money that we are borowing. 2. We have not benefited as a country from the other loans we acquired in the past. 3. We have plenty of of unused land and we own more that 40% of fresh water in southern and central Africa. 4. Most of the youths are unemployed and there is plenty of cheap labour. 5. We are a very peaceful country with no history of war meaning we have all the time to do productive staffs

    • @Luvb, leave the doing ‘staff’ alone lol, they are not worth it as they are debt ridden and might infect you with kongolemania Thanks but no thanks for stereotyping me as a dramatist but I am actually a realist. I hear you and welcome aboard.

  17. Chikwanda at it again. He left nkongole under UNIP. A fossil dug from the grave to come and create another nkongole under PF. Wake up Zambians and protest like colleagues in Greece and Spain. These are as good as dead and they do not mind stealing now for their great grand children so that our great grand children can pay while their great grand children are celebrating and possibly in leadership to continue looting. I miss Levy Mwanawasa because Chiluba was as good as a prisoner. Now there are maneuvers to let RB off the hook so that precedence is set to let SATA off the hook once out of power in 2016. SHAME!

    • These borrowings are CRIMINAL when there is absolutely NO PLAN on how the money will be spent, and NO PLAN on how the debt will be paid back.

      Zambia was bailed out from the debt accumulated by Chikwanda once before by the HIPC initiative. It will not happen again.

      This F00LISNESS and STUPlDITY is condemning millions of Zambians and generations yet unborn to lives of poverty and misery. We cannot allow this. For the sake of our children and their children we must stop this CORRUPTION NOW!

    • Agreed…. no time for disparaging remarks – let us all unite and show unit of purpose. PF guys have started softening their stance and must be welcomed back to the fold of other parties. I am going to join UPND as that is the party that inspires me at the moment. I will join them as soon as I am in Zambia this summer and put my name forward for 2016 parliamentary polls on the CB where I am from and very popular. I would win as an independent but I think that is wasting of a seat. I want to influence real change in our political landscape and give back all I have learnt here in the western world for the past 3 decades. I am ready!!! I know there are a lot of you who feel the same as I do. Procrastination is a hindrance to progression. Time is now! – let’s go and help Zambia. VOTE up!

  18. I for one sees no wrong in borrowing if the money is being put to good investment. To you who are so childish and do not now what investment means let me give you some hints. Investment mean putting money in some activity that will give you earnings either in a short run or long run. Many big investments pay off in the long run like 10 to 20 years, and such investments are in the form of infrastructural creation such as roads, schools, Hospitals, rail, etc. If the PF are doing so, then they are doing the right thing.

    Any way, a word of caution to the PF, please do not steal this money in the manner the MMD stole our money. Let this money be put to good us.

    Peace and Prosperity to Mother Zambia.

    • How did the MMD steal your money? stop speculating and give us hard evidence plus the amounts that were stolen. Meanwhile your PF is busy looting at the RDA. Road contracts are been awarded at state House to tribesmen and relatives. Here is how Sata and Nsanda are doing it: A tribesman or relative creates a shell company. He then bids to construct Chipata-Vubwi road at K1.5m per kilometre. Since he doesn’t even have the equipment, once awarded the contract he then proceeds to engage a Chinese company whose going rate at the moment is K1m per kilometre. The tribesmean then pockets K500 000 per kilometre. Most of this money is been externalised. You wont get away with this looting!

    • there are high chances that you do not understand the principle behind lending money. A if tips for you anothers;
      1. the lender has already worked out the future value of the money with a profit
      2. the 8.5% is not a flat rate, but a compound interest rate, which means the lenders makes money on the interest – defaulting can be very costly – Ask Greece in Europe
      3. Time is key, you do not borrow and bank the money as is the case at ZRL and many other companies
      4. You only borrow after you have done a proper business or project appraisal, to ensure you invest where it matters the most
      5. Plan the course of action, implementation plan and put M&E in place so that you do not lose out on time factor
      PF is doing not of the above, hence they borrow and think later what to do with the…

  19. Our learned friends in government should first start by educating us on what the money is going to be used for. You do not borrow money before having a plan on how you are going to use it and how you are going to pay it back. The problem with the current government is that they are so disjointed that they rarely make coherent statements. This is a typical case of shooting from the hips.

    • What “learned friends” are you referring to?

      All I can see is blundering IDI0TS that have no clue what they are doing besides helping themselves to the Zambian taxpayers money! And now that is even not enough. They are taking out credit, with the the Zambian Nation as security, so they can waste and steal even more!

      And we have CL0WNS like Kabimba telling us that Government cannot afford $ 3 million for a referendum, while the are borrowing $ 1 billion?????

      Can Zambians really be that STUPlD as to believe that? We must kick these lying criminals out NOW. 2016 will be TOO LATE!

  20. You know what you people, the PF is led by seasoned politicians. By 2016, they will be so successful that the UPND will have nothing to say against the PF. They are borrowing to fulfill their grand projects. Listen, by 2016, there will be great roads, new airports, the railway system will be up and running. Mealie Meal prices will drop due to bumper harvests, the Kwacha will stabilize and trade at 1$ to K4,500….

    The road map for the constitution will be released with parliamentary approval….

    Imwe don’t play with seasoned politicians. Just seat and watch how the PF will rule for another 20 years with very good development results.

    • @Mwamoneni By “seasoned politicians” you mean these fossil dinosaurs who only know failed UNIP era politics of the belly?

      Or a CL0WN in state house that has failed to even give the Nation ONE SINGLE PRESS CONFERENCE since 2011? But has increased his salary THREE TIMES since then?

      Or a Minister of Agriculture that can only deliver inputs when the crop is already being harvested?

      Or Satas uncle Chikwanda that does not know if he is going forward or backward with SIs that he reversed?

      Which one of these is the “seasoned politician” you are talking about??

  21. When our creditors come calling,our children’s future will be already be mortgaged into debt slavery by these clueless PF losers.Zambia is not gonna develop with this model of borrowed wealth.

    • Bembas have a better way of putting this; “akalimba kakwashima takapwamisango”, translated implies do not be comfortable with anything borrowed. Zambia is in trouble with these people posing as leaders.

  22. We did it, 3 elections , but kept trying …on the last we figured lets use Donchi Kubeba. we told you the story about the 90 day constitution, and ha our very learned and distinguished lawyer in the name of Winter Maize to dribble you, we put up a budget and over spent now have to borrow hahahahaha… in the meantime since we are so old and useless we know wont be around to pay the debt. come 2016 we are working on another fib…we are building you roads in the compounds but since you are so blind you cant see that we auctioned the currency by removing zeros and making you belive that now the Kwacha is a great currency at the same time we created SI s we have no clue of managing , we removed them but dont excited we are doing a donchi kubeba

  23. The excellency excluded me when he said his Ministers are useless. I Winter Maize cannot be useless because H.E. knows me better than my father.

  24. We are thinking of elavating Boy George to Minister with out Portfolio, he will be in charge of determining what goes on Face book, which tribunal will be allowed to sit and which ministers and deputy ministers should be singled out for corruption cases , this allin an effort to make our party and its governemnt look transparent. The boy has managed to Tarnish GBMilling and now the next target is the Guy from Luanshya. One day in future this Boy will work for Haleisa Haleisa as publicity manager … Boy George might consider helping out Nevous Mwimba … keep up the good work,

  25. Please vote for us in 2016, so that we finish this well… more money in your pockets is a reality. we can do this… congratulations to the prince for becoming mayor, now winter maize will be dissappointed because like father says .. you have to start at the lower ranks to get to president shame on Haleisa Haleisa who has never been a cadre and mayor.

  26. Follow this noble rule below:-

    Borrower, lender neither be.
    If you BORROW money from a man – you make him your MASTER!!
    If you LEND money to a man – you make him your ENEMY!!

  27. Having a huge debt as a developing country (or assumedly developing) I believe, is different from when you are a developed one. Developed countries have infrastructures to fall back on. They sustain their debt servicing because they manufacture, produce, sell and still lend YOU money with interest (of course some of it from exploiting your own resources) But Zambia is mostly just a seller of raw materials and also a retailer of goods manufactured elsewhere. Everyone appears to be selling one thing or other in Zambia (mostly what they didn’t produce) How much buying power do those few who buy, have? That is why a lot of shops at the shopping malls have huge unsustainable overhead costs and debts. Not enough people are spending.

  28. WE offer loan to people on bad credit, home improvement loan, personal and business loan, student looking for financial help and to companies etc with a very low interest rate and with or without collateral. International and Local Loan Lender, We offer Loans with a capital base between a minimum Range of Three thousand Dollars ($ 3000USD) and a maximum Range of Ten Million Dollars ($ 10,000,000.00 USD,) at 3% Interest Rate Depending, I give out loan to an Individuals, Firms and Cooperate Bodies even those with Bad Credit History DEPENDING on their Marital Status, Sex, Religion, and LOCATION but must have a legal means of repaying Back the Loan at the stipulated time, AND MUST BE TRUST WORTHY

    APPLICATION…

  29. you zambians have demonstrated to me how empty skulls you are!!!!!!. if you are disputing with my observation and conclusion there-of, show me your best argument regarding the above matter. i will be here waiting for you!!!!!!!!!!!!!!!!!

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