Sovereign bonds yielding desirable result.
soverign bonds placed on projects that stir up developmental projects. The Ministry of Finance and National Planning has said spending of the two Sovereign Bonds that government acquired is effectively minimizing the level of external debt.
Speaking to the Lusaka Star in an interview, Ministry of Finance Public Relations Officer, Chileshe Kandeta said Zambia’s Sovereign Bonds issued in the international capital markets are performing to the desired expectations.
Mr. Kandeta said that the US$750 million Bond which was issued in September, 2012 which was yielding at a rate of 5.365% has strengthened over the past months from 8.4% to 7.44% currently.
“The yield rates fluctuate according to the market conditions,” he said.
Mr. Kandeta said the recently issued US$ 1 Billion Bond which was yielding at a rate of 8.625% is performing over par and currently trading at 8.16%.
He said the usage of the bond is principally targeted at the energy and transport sectors.
Meanwhile Secretary to the treasury Fredson Yamba said the positive performance of Zambia’s Sovereign Bonds is not only an important indicator of international community’s discernment of our political, social and economic stability, but also an endorsement of Zambia’s consistent and market friendly economic policies.
Yamba added that it is a confirmation that Zambia’s positive image is truly venerated by the international community.
As at 31st march, 2014, the Bond has being allocated to projects that stir development among others the Kafue Gorge Lower Power Project, Power Distribution Project (ZESCO) with US$ 186 Million and US$ 69 Million respectively for the programs and US$ 310 Million of which US$145 Million.
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