Zambia launches $600m AfDB-backed debt-for-energy swap to buy back 2053 Eurobond
On May 29, 2026 Zambia launched a tender to repurchase its U.S.$1,364,725,564 Fixed Rate Step-Up Amortizing Notes due 2053, funded by a U.S.$600 million concessional loan from the African Development Bank and the Republic’s own resources, with savings ring-fenced for a 15-year Grid Resilience Program.
The desk brief
On May 29, 2026 Zambia launched a tender to repurchase its U.S.$1,364,725,564 Fixed Rate Step-Up Amortizing Notes due 2053, funded by a U.S.$600 million concessional loan from the African Development Bank and the Republic’s own resources, with savings ring-fenced for a 15-year Grid Resilience Program.
If at least 75% of the 2053 notes are tendered, Zambia can trigger the clean‑up provision and replace higher-cost bond obligations with a concessional AfDB loan and domestic resources. That would smooth future debt service and create a ring‑fenced 15‑year funding stream for grid upgrades. Actual fiscal and sector outcomes depend on investor take‑up, activation of the clean‑up clause, and transparent delivery of the Grid Resilience Program.
Tender participation results and whether the 75% threshold is reached to activate the clean-up provision.
Sources & verification
Developing storyFurther independent confirmation is required.
- Zambia initiates a landmark debt-for-energy conversion with the support of the African Development Bankmofnp.gov.zmSource published (opens in a new tab)
- Zambia’s Debt-for-Energy Swap Explainedzambianeconomist.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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