admin“Indications are that the bond might be oversubscribed thereby giving us leeway to raise it to around $700 million,” Chikwanda said in a statement in parliament.
Zambia has a B+ long-term credit rating with a stable outlook from Fitch and Standard and Poor’s.
“This (credit rating) has improved investor sentiments about the economy and created conditions in which increased borrowing from the international community to finance our infrastructure needs is affable.”
Chikwanda said investor confidence had improved on the back of a fight against corruption.
“One indication is in the numerous enquiries, which we have received from both local and international prospectors on our intended issuance of a sovereign bond,” he said.
Last month Chikwanda said Lusaka would not get sucked into unsustainable debt.
Zambia’s debut $500 million, 10-year Eurobond was oversubscribed five-and-a-half times and demonstrated the appetite for liquid African paper. — Reuters.
Online Reporter