Zambia and Eurobond holders agree terms to restructure sovereign Eurobonds, World Bank says

On March 26, 2024 the Government of the Republic of Zambia reached an agreement with Eurobond holders on the terms for restructuring its Eurobonds, a key milestone after bilateral creditor talks and with the Official Creditor Committee confirming comparability of treatment. Other commercial creditors must still agree to comparable terms to finalize the process.

Agreement on restructuring terms can alter the timing and magnitude of creditor cash flows and may improve prospects for restoring Zambia’s debt sustainability, which in turn could affect secondary market pricing for affected maturities. Actual impact on yields and FX will depend on implementation details, acceptance by remaining commercial creditors, and any ensuing IMF/World Bank financing or policy conditions.

Completion of negotiations with remaining commercial creditors to accept comparable restructuring terms.