{"id":5628,"date":"2023-10-26T12:12:10","date_gmt":"2023-10-26T12:12:10","guid":{"rendered":"https:\/\/infundpros.com\/business\/zambia-reaches-deal-for-debt-relief-on-4bn-owed-to-bondholders\/"},"modified":"2023-10-26T12:12:10","modified_gmt":"2023-10-26T12:12:10","slug":"zambia-reaches-deal-for-debt-relief-on-4bn-owed-to-bondholders","status":"publish","type":"post","link":"https:\/\/infundpros.com\/?p=5628","title":{"rendered":"Zambia reaches deal for debt relief on $4bn owed to bondholders"},"content":{"rendered":"<div>\n<p>Unlock the Editor\u2019s Digest for free<\/p>\n<p class=\"article__content-sign-up-topic-description\"><span>Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.<\/span><\/p>\n<p><iframe class=\"article__content-sign-up-iframe close\" scrolling=\"no\" id=\"signUpIframe\" data-prev-url=\"\/register\/in-article-sign-up?ft-content-uuid=24f46dbd-58a2-474e-badc-6156509bf42f\"><\/iframe><\/div>\n<div id=\"article-body\">\n<p>Zambia has reached a deal for relief on nearly $4bn owed to private bondholders, raising hopes that a protracted debt restructuring by Africa\u2019s second-largest copper producer is nearing its end.<\/p>\n<p>A committee of bondholders agreed to extend maturities and slash interest payments on terms matching recent breakthrough deals with China, Zambia\u2019s biggest lender, and other official creditors, the southern African nation\u2019s finance ministry said on Thursday.<\/p>\n<p>President Hakainde Hichilema\u2019s government has suffered a long delay in restructuring $13bn in external debt, including $3bn of foreign currency bonds, since a 2020 default under his predecessor.\u00a0<\/p>\n<p>Chinese and other official creditors failed for years to agree on where losses would fall, meaning Zambia\u2019s restructuring was widely seen as a precedent for other developing countries that had borrowed heavily from Beijing. The process has also been viewed as a test case for a G20 \u201ccommon framework\u201d for sovereign debt restructuring.<\/p>\n<p>The agreement with bondholders comes after Zambia formalised deals to rework $6.3bn of official debts earlier this month, allowing the country to proceed with a $1.3bn IMF bailout.\u00a0<\/p>\n<p>Both agreements provide upfront relief but have also been made possible by a promise to repay more debt if Zambia\u2019s economy fares better than expected in the next few years. This will be based on exports and tax revenue data and an IMF assessment of how much debt Zambia can sustain.<\/p>\n<p>The deal \u201cbrings us closer to the completion of Zambia\u2019s debt restructuring, which will release significant resources for our developmental agenda\u201d, said Situmbeko Musokotwane, Zambia\u2019s finance minister.\u00a0<\/p>\n<p>The bondholder deal will now need to proceed to an offer to exchange old bonds for newly issued debt. \u201cWe hope for the swift implementation of this agreement in principle by the end of the year,\u201d Musokotwane said. Asset managers represented on the bondholder committee include Amundi, Greylock Capital Management and RBC BlueBay.<\/p>\n<p>The deal will reduce the face value of the bonds by 18 per cent. Bondholders have gone beyond official creditors and agreed to directly write off $700mn of their claims, which have grown to $3.8bn as post-default interest on bonds originally due in 2022, 2024 and 2027 piled up.<\/p>\n<p>Chinese creditors have avoided face value cuts on their Zambian loans. Zambia\u2019s finance ministry said that the cut to overall future cash flows on the private bonds will be \u201csignificant\u201d, but has not disclosed precise terms.<\/p>\n<p>The scale of debt relief will depend on whether better economic performance for Zambia in the next three years triggers higher payments on a third of the new restructured bonds. These will either mature in 2035, or not be paid back until 2053 if Zambia misses IMF targets.<\/p>\n<p>\u201cThe proposal represents an innovative and sustainable solution that we hope will set a positive precedent for future sovereign restructurings under the Common Framework,\u201d the bondholder committee said.<\/p>\n<\/div>\n<p>Read the full article <a href=\"https:\/\/www.ft.com\/content\/24f46dbd-58a2-474e-badc-6156509bf42f\" target=\"_blank\" rel=\"noopener\">here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Unlock the Editor\u2019s Digest for free Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter. Zambia has&#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[22],"tags":[],"class_list":{"0":"post-5628","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-business"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Zambia reaches deal for debt relief on $4bn owed to bondholders | inFundPros<\/title>\n<meta name=\"description\" content=\"Unlock the Editor\u2019s Digest for freeRoula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.Zambia has reached a deal for\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/infundpros.com\/?p=5628\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Zambia reaches deal for debt relief on $4bn owed to bondholders | inFundPros\" \/>\n<meta property=\"og:description\" content=\"Unlock the Editor\u2019s Digest for freeRoula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.Zambia has reached a deal for\" \/>\n<meta property=\"og:url\" content=\"https:\/\/infundpros.com\/?p=5628\" \/>\n<meta property=\"og:site_name\" content=\"inFundPros\" \/>\n<meta property=\"article:published_time\" content=\"2023-10-26T12:12:10+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/tech-wall.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1920\" \/>\n\t<meta property=\"og:image:height\" content=\"1200\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Press Room\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Press Room\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/infundpros.com\/?p=5628#article\",\"isPartOf\":{\"@id\":\"https:\/\/infundpros.com\/?p=5628\"},\"author\":{\"name\":\"Press Room\",\"@id\":\"https:\/\/infundpros.com\/#\/schema\/person\/87f7e632b195ea95c91503d9281f5eff\"},\"headline\":\"Zambia reaches deal for debt relief on $4bn owed to bondholders\",\"datePublished\":\"2023-10-26T12:12:10+00:00\",\"dateModified\":\"2023-10-26T12:12:10+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/infundpros.com\/?p=5628\"},\"wordCount\":506,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/infundpros.com\/#organization\"},\"articleSection\":[\"Business\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/infundpros.com\/?p=5628#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/infundpros.com\/?p=5628\",\"url\":\"https:\/\/infundpros.com\/?p=5628\",\"name\":\"Zambia reaches deal for debt relief on $4bn owed to bondholders | inFundPros\",\"isPartOf\":{\"@id\":\"https:\/\/infundpros.com\/#website\"},\"datePublished\":\"2023-10-26T12:12:10+00:00\",\"dateModified\":\"2023-10-26T12:12:10+00:00\",\"description\":\"Unlock the Editor\u2019s Digest for freeRoula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.Zambia has reached a deal for\",\"breadcrumb\":{\"@id\":\"https:\/\/infundpros.com\/?p=5628#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/infundpros.com\/?p=5628\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/infundpros.com\/?p=5628#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/infundpros.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Zambia reaches deal for debt relief on $4bn owed to bondholders\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/infundpros.com\/#website\",\"url\":\"https:\/\/infundpros.com\/\",\"name\":\"Fintech Advance\",\"description\":\"Latest Finance and Tech News and Updates\",\"publisher\":{\"@id\":\"https:\/\/infundpros.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/infundpros.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/infundpros.com\/#organization\",\"name\":\"Fintech Advance\",\"url\":\"https:\/\/infundpros.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/infundpros.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/tech-logo.png\",\"contentUrl\":\"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/tech-logo.png\",\"width\":409,\"height\":70,\"caption\":\"Fintech Advance\"},\"image\":{\"@id\":\"https:\/\/infundpros.com\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/infundpros.com\/#\/schema\/person\/87f7e632b195ea95c91503d9281f5eff\",\"name\":\"Press Room\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/infundpros.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/avatar_user_1_1697230663-96x96.png\",\"contentUrl\":\"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/avatar_user_1_1697230663-96x96.png\",\"caption\":\"Press Room\"},\"sameAs\":[\"https:\/\/infundpros.com\"],\"url\":\"https:\/\/infundpros.com\/?author=1\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Zambia reaches deal for debt relief on $4bn owed to bondholders | inFundPros","description":"Unlock the Editor\u2019s Digest for freeRoula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.Zambia has reached a deal for","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/infundpros.com\/?p=5628","og_locale":"en_US","og_type":"article","og_title":"Zambia reaches deal for debt relief on $4bn owed to bondholders | inFundPros","og_description":"Unlock the Editor\u2019s Digest for freeRoula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.Zambia has reached a deal for","og_url":"https:\/\/infundpros.com\/?p=5628","og_site_name":"inFundPros","article_published_time":"2023-10-26T12:12:10+00:00","og_image":[{"width":1920,"height":1200,"url":"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/tech-wall.jpg","type":"image\/jpeg"}],"author":"Press Room","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Press Room","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/infundpros.com\/?p=5628#article","isPartOf":{"@id":"https:\/\/infundpros.com\/?p=5628"},"author":{"name":"Press Room","@id":"https:\/\/infundpros.com\/#\/schema\/person\/87f7e632b195ea95c91503d9281f5eff"},"headline":"Zambia reaches deal for debt relief on $4bn owed to bondholders","datePublished":"2023-10-26T12:12:10+00:00","dateModified":"2023-10-26T12:12:10+00:00","mainEntityOfPage":{"@id":"https:\/\/infundpros.com\/?p=5628"},"wordCount":506,"commentCount":0,"publisher":{"@id":"https:\/\/infundpros.com\/#organization"},"articleSection":["Business"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/infundpros.com\/?p=5628#respond"]}]},{"@type":"WebPage","@id":"https:\/\/infundpros.com\/?p=5628","url":"https:\/\/infundpros.com\/?p=5628","name":"Zambia reaches deal for debt relief on $4bn owed to bondholders | inFundPros","isPartOf":{"@id":"https:\/\/infundpros.com\/#website"},"datePublished":"2023-10-26T12:12:10+00:00","dateModified":"2023-10-26T12:12:10+00:00","description":"Unlock the Editor\u2019s Digest for freeRoula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.Zambia has reached a deal for","breadcrumb":{"@id":"https:\/\/infundpros.com\/?p=5628#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/infundpros.com\/?p=5628"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/infundpros.com\/?p=5628#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/infundpros.com\/"},{"@type":"ListItem","position":2,"name":"Zambia reaches deal for debt relief on $4bn owed to bondholders"}]},{"@type":"WebSite","@id":"https:\/\/infundpros.com\/#website","url":"https:\/\/infundpros.com\/","name":"Fintech Advance","description":"Latest Finance and Tech News and Updates","publisher":{"@id":"https:\/\/infundpros.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/infundpros.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/infundpros.com\/#organization","name":"Fintech Advance","url":"https:\/\/infundpros.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/infundpros.com\/#\/schema\/logo\/image\/","url":"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/tech-logo.png","contentUrl":"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/tech-logo.png","width":409,"height":70,"caption":"Fintech Advance"},"image":{"@id":"https:\/\/infundpros.com\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/infundpros.com\/#\/schema\/person\/87f7e632b195ea95c91503d9281f5eff","name":"Press Room","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/infundpros.com\/#\/schema\/person\/image\/","url":"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/avatar_user_1_1697230663-96x96.png","contentUrl":"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/avatar_user_1_1697230663-96x96.png","caption":"Press Room"},"sameAs":["https:\/\/infundpros.com"],"url":"https:\/\/infundpros.com\/?author=1"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/infundpros.com\/index.php?rest_route=\/wp\/v2\/posts\/5628","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/infundpros.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/infundpros.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/infundpros.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/infundpros.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=5628"}],"version-history":[{"count":0,"href":"https:\/\/infundpros.com\/index.php?rest_route=\/wp\/v2\/posts\/5628\/revisions"}],"wp:attachment":[{"href":"https:\/\/infundpros.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=5628"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/infundpros.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=5628"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/infundpros.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=5628"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}