Zambia’s announced $1.36bn buyback of restructured 2053 bond meets creditor pushback

On June 1, 2026 Zambia launched a tender to repurchase $1.36 billion of its 2053 restructured dollar bond, offering $780/$740 per $1,000 depending on timing. An ad-hoc group of noteholders, advised by Cleary Gottlieb, said the offer was “materially adverse” and amassed support exceeding 25% to oppose the tender.

The announced buyback aims to avoid a contractual coupon step-up that would raise annual interest sharply; if the government succeeds it replaces commercial debt with cheaper AfDB-backed and domestic funding, lowering future debt service. Creditor coordination and potential use of the contract’s 75% clean-up call could force remaining holders to sell, creating legal and pricing uncertainty for Zambia’s restructured curve until the dispute is resolved.

Whether the ad-hoc creditor group files formal legal action or secures blocking positions ahead of the June 5 priority tender deadline.