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12 June 2024
The Republic of Zambia, represented by the Minister of Finance and National Planning of Zambia (the “Issuer” or “Zambia”) is pleased to announce today the successful completion of the mandatory exchange (the “Exchange”) of its U.S.$3 billion in outstanding Eurobonds (the “Existing Notes”) for New Notes.
The Exchange was approved by holders of more than 95% of the outstanding principal amount of Existing Notes pursuant to a Consent Solicitation launched on 13 May 2024 on the terms and subject to the conditions set out in the Consent Solicitation Memorandum dated 13 May 2024 (the “Memorandum”). Terms used in this announcement but not defined herein have the respective meanings given to them in the Memorandum.
Following the successful completion of the Exchange, the Minister of Finance and National Planning of Zambia, Hon. Dr. Situmbeko Musokotwane, MP, said:
“Today is a historic day for Zambia as we complete the restructuring of our Eurobonds. This significant accomplishment in our debt restructuring puts Zambia back on track to achieve sustained growth and prosperity for all. We are grateful to the bondholders for their cooperation in finding a resolution, as well as all our international partners who made this achievement possible. As we get closer to closing this chapter, we remain committed to strengthening our economy and improving the lives of Zambians.
“We continue to make positive progress with our reform agenda and remain committed to unleashing Zambia’s full potential by enhancing the investment climate, reducing red tape, removing inefficiencies in governance, strengthening spending and enhancing borrowing oversight and investing in human development. Zambia has the potential to become an integral part of the global energy transition by providing solutions to the world’s need for rare minerals. We have vast land resources, and we believe our agricultural sector in the right climate conditions has the potential to feed the region. Our tourism industry is also bouncing back. Finally, we are working to unlock investment in telecommunications, digitalisation, finance and transport sectors. I’m confident that today’s news is good news for all these sectors, the Zambian economy and every Zambian.”
Noteholders who participated in the Consent Solicitation and certified their status as Eligible Holders have now received the New Notes to which they are entitled pursuant to the terms of the Exchange and those Noteholders who voted in favour of the Exchange by the Early Consent Deadline have received the Consent Fee in the amount of U.S.$15 per U.S.$1,000 in principal amount of Existing Notes.
Noteholders that did not participate in the Consent Solicitation will be subject to the Holding Period Arrangement described in the Memorandum and Ineligible Holders will be subject to the Cash Proceeds Arrangement. Zambia will shortly make an announcement concerning the Holding Period Arrangement and Cash Proceeds Arrangements, including the procedures for relevant Noteholders to receive New Notes or the Substitute Consideration, as the case may be.
This announcement is released by The Republic of Zambia, represented by the Minister of Finance and National Planning of Zambia, and contains information that qualified or may have qualified as inside information for the purposes of Article 7 of Regulation (EU) 596/2014 as it forms part of United Kingdom domestic law by virtue of the European Union (Withdrawal) Act 2018, encompassing information relating to the Consent Solicitation and the Proposal described above.