K193.2m five-year bond to support Zambia’s domestic capital markets issued 

By BUUMBA CHIMBULU

A K193.2 million five-year bond to support the development of the country’s domestic capital markets has been issued by the International Finance Corporation (IFC).

The amortising “Zambezi” bond which is equivalent to approximately US$10 million is also meant to increase access to local currency finance.

This is IFC’s second Kwacha-denominated bond after it placed the first bond issued by a non-resident issuer in Zambia’s domestic capital markets in 2013.

The issuance is the corporation’s first floating rate note in Zambian Kwacha and forms part of IFC’s registered Medium Term Note programme in Zambia as well as IFC’s Pan-African Domestic Medium-Term Note Programme.

IFC Vice President and Treasurer, Treasury & Mobilisation John Gandolfo, in his comment on the development said the institution was happy to be back in the Zambian market.

“Deep and liquid domestic capital markets are essential to expanding access to much-needed local currency finance for key sectors in the economy.

 “Scaling up local currency financing is a key priority for IFC and we’re delighted to be back in the Zambian market,” Mr Gandolfo said.

Absa Bank Zambia was the lead arranger and First National Bank Limited the co-arranger for this issuance.

Jason Quinn, Absa Group Chief Financial Officer on his comment said the bank took pride in its commitment to continue to play a role in promoting and developing access to capital markets for our clients in Zambia and across the African continent.

 “The successful bond issuance is a testament to the credit quality of the issuing entity, IFC. This transaction also demonstrates the critical role that the private sector plays in helping the country’s capital markets and driving economic growth,” Mr Quinn said.

IFC’s work in Zambia is focused on promoting sustainable private sector development by improving the investment climate, supporting small businesses and proactively engaging in the development of key sectors such as infrastructure, agribusiness and financial services.

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