Zambia has successfully issued a second sovereign bond in the international capital market amounting to US$ 1 billion. This amount is factored into the 2014 budget and the mid-term expenditure framework. Like the first sovereign bond issued in September, 2012, this bond has been a resounding success.
The second bond, just like the first, was significantly oversubscribed, an expression and affirmation of the confidence the international investor community has in Zambia.
This is according to a statement released by Christian Voice news in Lusaka Tuesday by acting finance minister Edgar Lungu. Mr Lungu who is also defence minister said the bond proceeds will be targeted at growth-prompting projects in the various critical sectors of the economy, namely the transport and energy sectors.
A team from the Ministry of Finance, Bank of Zambia and Ministry of Justice has over the past two weeks worked exceedingly hard to rally international investors behind our second sovereign bond. The team has been complemented by our local and international lawyers and equally significant our book runners Barclays Bank and Deutsche Bank. I want to express our unqualified thanks to this team of men and women for their stupendous efforts, undivided attention to duty and providing the international investor community with all the necessary information on the Zambian economy which induced the confidence in Zambia resulting and culminating in the massive participation in the bond subscription.
The resources from the international capital market will help to accelerate the Government’s development agenda which already has had an impact and is acquiring great momentum. The huge investments in billions of dollars in mining ventures in new frontier areas, and in corporate agriculture, are clear testimonies of the efficacy of our development agenda. They underpin our hopes.
I thank the Zambian people for their unfettered support of our Government. As a Government, we have a duty and obligation to deliver and we will, with your continued support, deliver.