Zambia completes $1.36bn buyback of 2053 Eurobond, backed by $600m AfDB loan
On June 10, 2026 Zambia announced that holders representing 97.85% of its $1.36bn 2053 eurobond had validly tendered in a cash buyback financed partly by a $600m African Development Bank loan; the operation frees up about $275m for a 15-year power-grid upgrade. The issuer says remaining bonds can be compulsorily redeemed under the bond’s clean-up call.
The desk brief
On June 10, 2026 Zambia announced that holders representing 97.85% of its $1.36bn 2053 eurobond had validly tendered in a cash buyback financed partly by a $600m African Development Bank loan; the operation frees up about $275m for a 15-year power-grid upgrade. The issuer says remaining bonds can be compulsorily redeemed under the bond’s clean-up call.
The transaction removes a long-dated, step-up liability from Zambia’s USD curve and substitutes concessional AfDB funding tied to a 15-year grid programme. That reduces nominal future coupon risk on the 2053 line and could improve investor perceptions of long-dated recovery values, while also redirecting fiscal resources into electricity investment rather than market debt service.
AfDB loan disbursement timetable and the launch milestones for the 15-year National Grid Resilience Program.
Sources & verification
Developing storyFurther independent confirmation is required.
- Zambia pulls off landmark debt deal, unlocking $275 million for power projectsbusinessinsider.comSource published (opens in a new tab)
- Zambia Completes External Debt Buyback Worth $1.36 Billion • 360 Mozambique360mozambique.comSource published (opens in a new tab)
Public references supporting this brief.
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- Zambin 33Jun 203396.1886.460%
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