JOHANNESBURG (The Business Telegraph): Lazard Frere’s have commenced a dollar bond stock take for its client Zambia after appointing Morrow Sodali to collate information on the debt holders and facilitate communications. A few months after the French investment banking firm had been settled for to restructure the copper producers liabilities, 30-35% of Eurobond holders domiciled in Europe and United States commenced a creditor grouping process to gear up for negotiations with the advisory firm (agent) acting on behalf of its principle, the Zambian government.
Zambia’s dollar bond stock rests at $3billion in 3 streams of maturities namely 2022, 2024 and 2027. Th copper producers external debt was last reported at $11.7billion (June). The MinFin has restricted external debt contracting to fund fiscal programs but will use domestic money markets to raise finance.
The copper producers steps to restore fiscal fitness was complemented by talks with the Washington based lender for an economic bailout package. Zambia awaits approval of a Rapid Credit Facility – RCF to help cushion disease pandemic shocks with hope of the facility graduating into a fully funded program after the 2021 polls.
On 25 September, Finance Minister Dr. Bwalya Ng’andu will present the fiscal budget for the year 2021 which many stakeholders include dollar bond holders are keen on to provide economic direction for Zambia especially after disease pandemic effects on growth and fiscal posture.
The Kwacha Arbitrageur.