Zambia completes buyback of US$1.36bn 2053 bond, backed by US$600m AfDB facility

On 11 June 2026 Zambia completed a financed tender to retire its US$1.36 billion Fixed Rate Step‑Up Amortising Note due 2053 after receiving sufficient participation (reported ~97.85%), using a financing package that included a US$600 million African Development Bank facility and domestic resources. The operation frees funds for electricity infrastructure.

Removing the long‑dated USD 2053 bond cuts concentrated long‑end external supply for Zambia and reduces future step‑up coupon risk tied to the bond’s contractual provisions. Conditional on the government allocating savings as stated, debt servicing outflows will fall and free fiscal space for power projects; broader USD EM spreads or US Treasury moves, however, will still influence Zambia’s USD funding costs independent of this liability removal.

Confirmation of final redemption payments and publication of the debt‑for‑development disbursement plan for the electricity projects.