Zambian Government Planning Yet Another Bond Program
The Zambian Government and ZESCO have announces they are planning a $500 million bond program to try and pay off their debts. ZESCO owes Nava Bharat Ventures $169 million.
It is being reported that the bond program will be done in two tranches, the first of which could be in the next month.
We have yet to receive comments from the Energy Minister Matthew Nkhuwa nor Finance Minister Chileshe Kandeta.
A director at Nava Bharat Ventures said;
“We are told that it’s in very advanced stage by the government and the local utility,”
This comes at a time when Zambia’s debt is at an all-time high, more than doubling over the PFs time in government.
The country is now at high risk of external debt distress, according to the International Monetary Fund. Yields on its Eurobonds are above 13 percent, indicating a new bond program would be pricey. Nava Bharat owns 65 percent of the 300 megawatt Maamba power plant in southern Zambia.