Zambia’s US Dollar Bonds Continue to Weaken Dramatically

Zambia’s US Dollar denominated bonds continue to weaken and the PF government as failed to clarify the true debt situation or their borrowing plans going forward causing nerves amongst foreign investors and analysts.

Head of Sovereign and Fixed Income Research at Exotic has said that until Zambia provides transparency on their debt, a ‘credible fiscal anchor,’ there will be little to stop the bonds and financial confidence falling further. As a result they are now advising Zambia 2027 bond owners to SELL rather than Hold.

The Exotix spokesperson stated “Market yields that have now reached 11.5% show the market has lost faith in Zambia and, if there was any confidence back in October that an IMF programme was still possible, this has now all but