Prices for dollar bonds for Africa’s copper producer Zambia rallied 8.0% across the board as Eurobond markets priced in news of a leadership change. This follows the election of opposition political party the United National Development Party – UPNDs candidate and president elect Hakainde Hichilema who defeated Patriotic Fronts – PF leader Edgar Lungu the outgoing President in the August 12 polls.
As at 10.41am in Zambia’s dollar bonds rallied 8.0% across the board to 69.996/70.733 (2022), 71.936/72.742 (2024) and 71.171/71.895 (2027) in bid/ask signalling investor confidence in the new elect leadership.
Yields on dollar bonds rallied to 39.620%/41.958% (2022), 21.457%/22.378% (2024) and 15.150%/15.594% (2027) in bid/ask.
Sentiment is forecast to claw back into the Zambian market as they price in an array of expected positives that the new head of state comes with ranging from commitment to sealing an IMF deal to policy shifts in the mining and energy sector. Zambia is in the middle of a debt restructure for which an International Monetary Fund – IMF deal remains a precursor of.
Zambia’s 6th Republican President Dr. Edgar Lungu has conceded defeat in an address to the nation at midday in the capital Lusaka.
The Kwacha Arbitrageur