IFC sells ZMW 150mn 4-year Zambezi bond amid huge interest

By bne IntelliNews September 20, 2013

The International Finance Corporation (IFC), the World Bank Group’s private sector investment arm, sold on Thursday (Sep 20) ZMW 150mn (EUR 21.3mn) worth of 4-year Zambian kwacha-denominated bond on the local market, aiming to support domestic capital markets and increase access to local-currency finance in Zambia. The issue, dubbed “Zambezi” bond, is IFC’s first kwacha-denominated bond and the first placement by a nonresident issuer in Zambia’s domestic capital markets, IFC said in a statement. The bond attracted huge investor interest with the order book exceeding ZMW 700mn, equivalent to an oversubscription of 4.8 times. The bond was issued at par and priced with an annual yield of 15%.

Jingdong Hua, IFC Vice President and Treasurer noted that the Zambezi bond supports IFC’s efforts to deepen domestic capital markets in Africa by creating access to long-term, local-currency finance for the private sector, which is the key engine of job creation in emerging markets. The Zambezi bond was the first issuance under the IFC Pan-Africa Domestic Medium Term Note Programme, which focuses on Botswana, Ghana, Kenya, Namibia, Rwanda, South Africa, Uganda, and Zambia. IFC bonds are rated triple-A by Moody’s and Standard & Poor’s.

Under its Zambian local-currency bond program, IFC can issue bonds of up to ZMW 2.5bn. Standard Bank and Stockbrokers Zambia are co-lead arrangers for the program.

In February, the IFC sold NGN 12bn (EUR 55mn) worth of 5-year Nigerian naira-denominated bond on the local market, raising the initially planned size of the issue by 50% due to strong demand. The issue, dubbed Naija bond, attracted orders worth NGN 20bn. IFC then said it would issue another one or two African local-currency bonds this year, aiming to promote local-currency lending.

Related Articles

Almaty cost of living lowest among major cities

Kazakhstan’s largest city and business centre Almaty has dropped to last place on the Economist Intelligence Unit’s bi-annual ranking of the ... more

AB InBev sells 54.5% stake in African Coke bottling business for $3.15bn

Anheuser-Busch InBev will sell a 54.5% stake in Africa's largest Coke bottler to Coca-Cola Company for $3.15bn, the two companies said in a joint statement on December 21. The deal is expected to ... more

IMF slashes South Africa’s 2016 growth outlook to 0.7%

The International Monetary Fund (IMF) has lowered sharply its 2016 GDP growth forecast for South Africa to just 0.7% from 1.3% anticipated in October, its World Economic Outlook (WEO) update released ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss