Zambia’s Bondholders To Engage Govt Over Solicitation Request

Lusaka ~ Thur, 1 Oct 2020

By ZR Reporter

The Committee of Bondholders for Zambia’s Eurobond have stated that they will engage in discussions with the Zambian government on the consent solicitation request to have the Eurobond debt repayment put on hold for six months.

In an emailed statement on Wednesday, the Bondholders Committee stated that it is currently unable to provide a positive response to the consent solicitation request given by Zambia at this time given the absence of clarity on a number of issues.

Because of this, discussions will have to be held by the two parties before an agreement can be reached, the Committee stated.

The Committee said members are ready to consider engaging with Zambia as part of a liability-management exercise, which may include


the provision of near-term debt relief, but such an exercise


should be designed in a way that provides a durable benefit to


all stakeholders.

The Committee, which has appointed Newstate Partners as financial advisors on Zambia’s request, consists of 14 international financial institutions based in the U.S. and Europe and in aggregate holds approximately 40% of the total amount of Zambia’s outstanding Eurobonds.

So far, the Committee says it is in close contact with holders representing additional 30%.