LUSAKA (Business Telegraph) – Stanbic Zambia’s first half after tax earnings rallied 4.2% to K173.1mln year on year as Africa’s second largest copper producers largest financial institution by asset size and profitability adjusted for sovereign risks. Weighed by a credit impairment of K130mln, quarter on quarter after tax earnings shriveled to K15mln from a 1Q20 posting of K157mln. Zambia’s long term issuer rating was in the period adjusted lower to CCC/Ca/C by Standards and Poor’s/ Moodys/Fitch. Despite disease pandemic effects priced into the business ecosystem exacerbating COVID related credit shocks, Stanbic Zambia’s income lines remain strong as evidenced by its…
Author: The Editor
LUSAKA (The Business Telegraph) – With liquidity north of K3.5bln, the central bank in Africa’s second largest copper producer sold a yard in cash terms absorbing part of the K1.25bln appetite observed. Of the total bids received K891.6mln was for 1-year paper which housed K867.1mln of that liquidity locking in at 25.48%, 52 basis points lower than a fortnight ago. Six and nine month bulls. A stronger rally was observed in the 6 and 9 month buckets whose yields softened 100 and 200bps respectively to 17.5% and 22.0% respectively. The Kwacha short end term structure of interest rates has extended its…
LUSAKA (The Business Telegraph) – With liquidity north of K3.5bln, the central bank in Africa’s second largest copper producer sold a yard in cash terms absorbing part of the K1.25bln appetite observed. Of the total bids received K891.6mln was for 1-year paper which housed K867.1mln of that liquidity locking in at 25.48%, 52 basis points lower than a fortnight ago. Six and nine month bulls. A stronger rally was observed in the 6 and 9 month buckets whose yields softened 100 and 200bps respectively to 17.5% and 22.0% respectively. The Kwacha short end term structure of interest rates has extended its…
LUSAKA (The Business Telegraph) – Zambia will in the week begining the 26 July seek to raise four yards in proceeds from the sale of pandemic long dated and shorter dated government securities. According to an advertised prospectus, the Bank of Zambia will be in the market for K2.67bln ($147mln equivalent) in 5,7,10 and 15 year COVID 19 bonds on 31 July. Zambia has to date sold K6.8bln worth of disease pandemic bonds in private offerings which aligned in pricing to the primaries. This will be the first primary and public market offering. Minimum participation in this sale will be…
LUSAKA (The Business Telegraph) – Dollar bonds for Africa’s second largest copper producer rallied close to 91 basis points on average in the 2022 and 2024 over the last 5 days. Zambia’s dollar bonds got a boost from deliberations with the Washington based lender IMF who were in virtual talks with the copper producers Ministry of Finance from 22 June to 10 July. IMF discussions a boost for dollar bonds. Zambia seeks a Rapid Credit Facility – RCF following heightened fiscal pressure in disease pandemic era that has seen reallocation of public resources to health care as the red metal…
Stanbic Bank Zambia Chief Executive Leina Gabaraane and Lafarge Zambia Chief Executive Officer Jimmy Khan shake hands earlier in 2019 (pre-COVID19).
LUSAKA (The Business Telegraph) – With K4.7bln of market liquidity into the fifteenth treasury bill sale of the year, the Bank of Zambia – BOZ sold K1.8bln worth of assets absorbing part of the K2.6bln appetite in bids. This is the second debt sale after the central bank widened its assets offered by 37% to K1.3bln from K950mln while simultaneously abolishing the 40% borrowing limit above the auction size. Of the amount sold in cash terms, slightly over a yard was housed in the 1 year whose return narrowed by 50 basis points to 26.0% and so increased interest from…
LUSAKA (Business Telegraph) – Washington based lender International Monetary Fund – IMF revised Zambia’s recession forecast for 2020 wider to -5.0% from an earlier -3.2% (at the virtual spring meetings in April). This meeting was held after cabinet approved for the Ministry of Finance to commence talks with the IMF for an economic program. The session addressed Zambian governments response to disease pandemic, interventions both on the fiscal and monetary side. Read also: IMF bailout package discussions with Zambia commence The Denashwar Ghura led Article IV mission team recently completed its virtual sessions with Africa’s largest copper producer, Zambia in…
The central bank in Africa’s red metal producer, Zambia, has to date issued a total of K6.8bln worth of long dated Kwacha fixed income paper to absorb the effects of disease pandemic. These bonds were named COVID bonds as part of an K8bln stimulus package to absorb obligations to retirees, suppliers and contractors. In the first tranche, the Bank of Zambia sold K5.2bln through a bond buy-back program in the short end which was swapped with long dated bonds in the 10 and 15 year tenors that saw participation from pension funds. This was part of a bond buy -back,…
The Zambian financial market space could record a potential merger of two banks namely Access Bank and Lusaka Securities Exchange – LuSE listed Cavmont Capital Holdings Plc. This is according to correspondence shared with the Business Telegraph. Nigeria Stock Exchange – NSE listed Access Bank Plc announced that its whole owned subsidiary Access Bank Zambia Limited has officially entered into exclusive talks with Cavmont Capital Holding Zambia Plc listed on the Zambian bourse for the sale of 100% of Cavmonts interests. Access Bank could be buying into Cavmont Capital existing growth. If this transaction succeeds, Access Bank Zambia’s balance sheet…