Oversubscribed bond is proof international investors have confidence in the Zambian economy-Chikwanda
Time Posted: April 12, 2014 9:56 pm
Finance Minister Alexander Chikwanda says the recently oversubscribed bond is proof that international investors have confidence in the Zambian economy.
Mr. Chikwanda has also observed that the oversubscribed bond is an indication that government is on the right track and has the confidence of key stakeholders.
The Minister was speaking in Washington DC when he and his Local Government and Housing counterpart Emmanuel Chenda has called on Zambia’s Ambassador to the US, Palan Mulonda.
And Mr Chenda says his mission to the high level meeting on water and sanitation in Washington DC was to share and learn from the best practices especially those on the African continent.
This is according to a statement issued by First Secretary for Press and Public Relations at the Zambian embassy in Washington DC, Patricia Littiya.
Meanwhile, the Economic Association of Zambia -EAZ- has welcomed Zambia’s successful issuance of a 1-Billion US dollars second sovereign bond on the international capital market.
EAZ president Isaac Ngoma however says though the country needs the money, the bond has come at a higher cost compared to the 7-hundred and 50 million US dollar bond which the government successfully issued in 2012.
Mr. Ngoma notes that there is need therefore to sustain the repayment of the bond on time and that government must state exactly how the money will be used.
The EAZ president was speaking on Kwacha Good Morning Zambia programme on ZNBC television on Saturday.
Acting Finance Minister, Edgar Lungu on Tuesday said like the first sovereign bond of September 2012, the second bond has been a resounding success and was oversubscribed.
In a statement to ZNBC, Mr. Lungu said the move is an expression and affirmation of the confidence the international investor community has in Zambia.
Mr Lungu says the bond proceeds will be injected into growth-prompting projects in various critical sectors of the economy, such as the transport and energy sectors.
A sovereign bond is a debt or loan issued by a country.