9.5 C
Alba Iulia
Tuesday, May 26, 2020

Zambia’s bankers fees for latest Eurobond have soured to $38.4million

Economy Zambia’s bankers fees for latest Eurobond have soured to $38.4million

Debt

Zambia’s costs for its third Eurobond issue soared compared with its debut sale in 2012, both managed by Barclays Plc and Deutsche Bank AG, the prospectus for the deal shows.

The southern African nation paid $4.14 million in fees and commissions for banks and lawyers, as well as costs associated with marketing the $1.25 billion sale, after taking account of the discounted price at which the notes were sold, according to data compiled by Bloomberg from the sale and prospectus documents. That compares with $1.4 million for its first offering in 2012, which was also managed by Barclays and Deutsche Bank.

This is the most expensive dollar debt issuance for an African government

 

The securities were sold at 97.257 of face value, a discount premium of $34.3 million, pushing total costs for the transaction to $38.4 million, the data show. The nation paid a discount premium of $14.6 million for its $750 million issue in 2012.

Yields on the latest Eurobond were 9.38 percent at sale, making it the most expensive dollar debt issuance for an African government. They climbed to 9.67 percent on Tuesday. Zambia, Africa’s second-biggest copper producer, had to pay up as prices for the metal slid to six-year lows and its fiscal deficit eclipsed government’s targets.

The shortfall will rise to 6.9 percent this year from a budgeted target of 4.6 percent, according to the prospectus.

Source :Bloomberg News

[Read 35 times, 1 reads today]

9 COMMENTS

  1. For PF members, this sounds like Rocket Science…in simple terms your visionless govt had to spend $38 million on consultants, lawyers and other smart people before getting $1,25 billion at over 9%….true madness and only in PF under Edgar

    • Do you expect kambwili and Chama to understand this…?

      Not even Edgar himself… it all explains why he never made it as a lawyer. Too dull

    • They just deliberately told the consultants to raise their fees in order to share the loot (get a good cut). Believe me 50% of that consultancy fees has come back to Zambia in individual bank accounts of Mukulu Wanchito, the Accountant & few vocal characters (in order to shut them up).

  2. you want to borrow k2 from your neighbor but before that you pay your other neighbor to facilitate the borrowing!

  3. Barclays dividends have go up by 15% and the bonuses and salaries plus appointments have been rewarded Saviour Head of Africa emerging six

  4. There are just too many ways for these bastards to steal. Too many loop holes. They are stealing left and right. And when they are out of office they get off the hook because the new bastards in office cover their predecessor’s ásses.

    Such a shame.

Comments are closed.

- Advertisement -
Loading...

Latest News

Sate Sate Kampamba’s Biography Set For June Launch

Nkana and Chipolopolo striker Ronald “Sate Sate” Kampamba's biography is set to be launched next month. Mufulira author Nickson Mutafela...

If My COVID-19 Positive Test had leaked, it would have undermined the fight, Dora tells BBC

Zambia's Information Minister Dora Siliya has told the BBC that she publicly shared her Covid-19 test results to fight stigma associated with the respiratory...

PF Regime Scheming Beyond The Gold

By: Anthony Bwalya - UPND Member The ferocity with which ZCCM-IH is defending the gold Joint Venture with foreign companies should have every patriotic citizen...

The President Failed to Incorporate Attacks on Media by Cadres on Covic-19 Update

What is the position of President Edgar Chagwa Lungu on the continued wave of attack on media? Attack on media by PF cadres has been...

Africa is now ready to lead – Nevers Mumba

By Dr Nevers Sekwila Mumba Former Vice President of Zambia and President of the Movement for Multiparty Democracy( MMD) Africa Freedom Day Statement INTRODUCTION: Before we became bond...

More Articles In This Category

- Advertisement -
[Read 25 times, 1 reads today]