Zambia launches AfDB-funded buyback of US$1.36bn 2053 Eurobond, ring-fences savings for power

On 29 May 2026 Zambia launched a cash tender to repurchase its US$1,364,725,564 Fixed Rate Step-Up Amortizing Notes due 2053, funded by a US$600 million African Development Bank concessional loan; by early results around 10 June 2026 holders of 97.85% had validly tendered and up to US$275 million of savings are committed to a 15-year Grid Resilience Programme.

Replacing a long-dated high-coupon Eurobond with concessional AfDB finance smooths and lowers Zambia’s dollar debt-service profile, reducing future refinancing risk on the long end. The transaction also legally channels up to US$275m of savings into transmission and distribution, which—if delivered—could raise productive capacity and fiscal space. Market spreads may tighten on the long curve if investors view the move as durable, but final settlement and AfDB disbursement are the triggers for any repricing.

Final tender settlement figures and AfDB loan disbursement; first deliverables from the National Grid Resilience Programme.