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Zambia has raised $750 million in a debut 10-year Eurobond

By editor
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Finance Deputy Minister Miles Sampa (fourth from left), Finance Permanent Secretary Felix Nkulukusa Bank of Zambia Deputy Governor Dr Bwalya Ng’andu and other officials from Zambia, Barclays Bank and Deutsche Bank celebrate after the launch of Zambia’s US$750million-worth bond on Wall Street in New York on Thursday 13 September, 2012. Picture by Chibaula D. Silwamba GRZ

Reuters reports that Zambia has raised $750 million, on the debut 10-year Eurobond with a yield of 5.625 percent on today, a market source said, adding that more than $11 billion of orders were received for the issue.

The popularity of the issue by Africa’s biggest copper producer reflects strong investor appetite for scarce frontier African paper.

The yield was 25 basis points tighter than Zambia’s initial 5.875 percent guidance.

The size of the Zambian bond also means it will be eligible for the JP Morgan EMBI Global index, increasing its appeal to major investors.

The southern African country, which is rated B+ by Fitch and Standard and Poor’s, plans to use proceeds from the issue to upgrade its infrastructure, particularly in the transport and energy sectors.

Fitch cited the country’s buoyant copper mining sector, political stability and GDP growth of over 6 percent as strengths, but said prospects for growth beyond 2012 were less certain due to dependence on copper, which accounts for about 80 percent of exports

[Reuters]

editor
editorhttp://www.lusakatimes.com

173 COMMENTS

    • this is mmd’s job my friend, and this was supposed to be done 6months ago and not today. u mean u could not see where mmd left the economy at. Anyway such brains like yours need to be forgiven

    • Zambia  is for us all,regardless of difference in ideology and methodology on the style of rule ad delivery,we’ve gat only one Zambia. Therefore, GOOD things should be appreciated and credit given. Similarly when mistakes or intentional errors are made,they must be denounced and condemned in the strongest possible way.If PF wanted it would have shunned all MMD’s good or bad policies.On this one its a gooooooooal! bravo PF! Job well done! what remains to be seen is how best they invest and use these benefits without corruption on social-economic development to lift the poor to middle income class on whose mandate they were elected….Next on the agenda,PF SPEED UP THE DELIVERY OF NEW CONSTITUTION, AND LET CHIPOKA GO BACK MALAWI

  2. Mutati and Dr Musokotwane made sure that Zambia was rated B+ by Fitch and Standard and Poor’s and they made sure that we were graded as a lower middle income country, Sata and PF were loud in saying that the gradings and classifications were fake and meant nothing….. that was to allow Zambia to sell bonds on the international market….. Now PF is seeing the benefits, i hope they could thank MMD for this. 

    • Iwe the Eurobonds were introduced by the PF not the MMD…the rating would be nothing without funds to use to upgrade or development infrastructure. The PF has made sure the B+ is now meaningful as they have managed to raise the funds Zambia desperately needs….You mean you can’t see that!

    • People just rejoice -whether MMD or PF – the good news is Zambia has raised some capital because of the collective effort of all of us in Zambia. Do you really think we could have gotten a B+ rating had it not been to the handwork of the miners, bricklayers and business women that are shuttling between China and Zambia everyday? Our GDP is growing not because of GOVERNMENT but because as Zambians we are working harder-smarter! We have started businesses etc – the Euro-bond will help us do more…

      PF now make sure this money does not disappear into CORRUPTION. Constitute a team that will OBJECTIVELY decide where to strategically invest this funds so we can even become richer as a country – don’t invest in politically correct projects to secure your 2nd term invest wisely.

    • Ba planzo: $10 billion would be a disaster and we would even manage to handle such an offering as a country. Our debt to income ratio would be 1:1 knowing that last years copper exports alone were equivalent to that number and it accounts for 80% of our GDP.

      So, we have to start at an amount almost 15 times smaller than our GDP and play smart. I have every confidence in Chikwanda (he is a fellow UNIPist like me) and he will put the money into the right place … one step at a time.

      The last Minister of Finance (Musokotwane) is another UNIPist. These UNIPists are the best stewards at Finance. Even though the former ended up not being as effective as I wanted him to because he was surrounded by a lot of corrupt individuals. I just want my Zambia back, a fantastic enterprise it was.

    • don’t bring tongas here, who is talking about tongas, what tribe are u? are u bemba already. pls take you tribalism else where. if u r safe where u r pls some of us we still treasure zambia as our home and we don’t want cival war because such talks like yours leads to fighting. Zambia is one.

    • @stud.Fantastic point. Its about getting the more but how we use it.Soon we are going to have contracts given to companies that cannot do the work, companies doing poor quality work or even companies that do not exist at all.By the time we realise some few individuals would have belt mansions in france bahamas and other well known paces leaving the majority zambians poor YET AGAIN.Lets discuss issues and not politics PLEASE FOR ONCE.

  12. Bloomberg News
    Zambia Sells Debut $750 Million Eurobond to Boost Budget
    Zambia, Africa’s largest copper producer, is selling its debut $750 million international bond to help fund its budget and invest in infrastructure.

    The 10-year, dollar-denominated debt went on sale today at a final coupon of 5.625 percent, said Sashi Kumi, a credit and fixed-income trader at Nedbank Capital’s London-based unit, and according to a term sheet obtained by Bloomberg. Deputy Finance MinisterMiles Sampa didn’t reply to two e-mails seeking comment.

    “Demand looks very good,” Kumi said in e-mailed reply to questions. “The Africa story, in general, is carrying favor with investors. People see great growth on the continent.”

  14. Lets such finances wisely! borrowing has always side effects but clever people use borrowed money to further enrich themselves. lets borrow to really enrich the country. Iam sure the fight against corruption will ensure that good contracted jobs are sensibly, reasonably and jealously policed, monitored and managed prudently. We are no longer supporting liberation wars. This money must work for real national development. Big picture, big ideas, big projects, more employment. Do not spend any of it on the constitution making process, its a bottomless pit!

  16. Dr Musokotwane. Thanks for the ground work. This should not be credited to PF.
    But ka 750m$ ka chepa sana. The country need a massive investment in the energy sector to tap the hydro potential. ka chepa ka 750m$. I hope ba pwele will not spend this on compagnes and other consumptions, eg paying off debts owed by mismanaged parastatals.

  17. This is Nkongole, Ba Mambala. Ithas to be repaid. Worry that the PF Govt will squander it by putting it peoples pockets, to fulfil their campaign promises. Next Govt shall be saddled with debt!

  18. Good work PF? teba pwele who did this. This was the brian child of Dr Musokotwane and his boses. Pwele should not be get the credit.

  21. i will never trust watchdog again those guys are liars. everything to them has to be negative, they made think that the Pf government has failed this asignment. bunch of losers! 

  22. Good – bad news! Nkongole nakabili? More so if the proceeds are not used properly by the PF govt. Please for once, PF, save our future generation by investing this money wisely, so that as we pay back, we will look back with contentment that whatever is being back worked for us all. Good luck!

  24. @Al. Tribal chaps like you make me sick to the bone. Did your mother nickname you tribe when you were born? There is nothing tribal about this. All we need to do is discuss the matter at hand and what it means for the country’s development especially for the ordinary Zambian. You and others of your senile kind may want to know that getting the Euro bond is one thing and utilising it wisely is another. Let’s not wag our tails too soon. Let’s wait and see and for now it’s kudos to Sata and team. Cheers to upright and level headed Zambians. Love you all and continue being peaceful.

    • l guess you dont read the constant vitriol at the watchdog cheered on by the tongas.They have been talking down the economy and rooting for failure and last week reported that issue had failed-when it was a blatant lie.People like you give it but you cant take it. Dont fight like a girl

  25. This is good for Zambia. Well done MMD as well as PF for not discontinuing a good this such as thing one on account that it was an MMD idea. This is maturity. I hope my president Mr. HH will not condemn this. Let him just talk about how he thinks the funds should be used.

    • I am holding my breath – the most likely reaction from HH will go like – “the PF is increasing poverty in Zambia – they are now tying you to a debt you will never repay. This is bad economic management because what we will need is to generate money from within etc etc.”

      I hope as you do he simply says Kudos and talks about not waisting this money into corruption. The problem we have in this country is corruption – which leads to a loss of money for government projects. HH and other opposition leaders will do good to be a significant watchdogs against that. 

  26. I don’t trust this govt. Problem with this facility is that this money is lent to the govt without any oversight as long as the creditors continue receiving their interest. I don’t have trust in this regime to use the money wisely. Remember at the head of this regime is Sata who put Local Govt ministry money in his stanchart account to allegedly to “earn” interest for the Ministry. Watch this $750million carefully! There is no supervision here, someone has just been given a loan by shylocks and all they are interested in is getting their money back…..otherwise the vultures will take you to the cleaners!

  27. When wise people are crying about massive debt (like the U.S), Zambians are celebrating more debt (inkongole). Anyways, what do you expect from a country that disses Dambise Moyo? Lets wait and see the more latest vehicle brands for GRZ on the useless Zambian roads, coz thats what Zambians know as development, “CARS”.

  31. I have ready all the posts above, and I have learned nothing. LT why allow such limited people to post such drivel without censoring them?

    Sad

    Thanks

  32. I’m very very proud of this government and my beautiful country Zambia. Keep up the good work!!
    Let me read the statement by the international independent news agency Reuters again out loud as I enjoy my afternoon tea and shortcake biscuits;

    “The popularity of the issue by Africa’s biggest copper producer reflects strong investor appetite for scarce frontier African paper.”

  34. Some hate – filled UPND bloggers can’t believe what PF has achieved in 90 days and in their bitterness want to give all the credit for this monumental achievement to the MMD! Ala nachibakalipa! Balefwaya nokupoka kubukali na jealousy! Let them go and jump into the Okavango and drown!

  35. Courtesy of the previous government. At least the previous government knew one or two things about economics and governance. That money will go into Sata’s and his cronies’ pockets. Look out for the most expensive government officials’ cars. By the way, $700 million is nothing for a country of 13 million people with such gigantic needs. $7 billion would make a bit of sense.

  36. Well done PF! Zambia  is for us all,regardless of difference in ideology and methodology on the style of rule ad delivery,we’ve gat only one Zambia. Therefore, GOOD things should be appreciated and credit given. Similarly when mistakes or intentional errors are made,they must be denounced and condemned in the strongest possible way.If PF wanted it would have shunned all MMD’s good or bad policies.On this one its a gooooooooal! bravo PF! Job well done! what remains to be seen is how best they invest and use these benefits without corruption on social-economic development to lift the poor to middle income class on whose mandate they were elected….Next on the agenda,PF SPEED UP THE DELIVERY OF NEW CONSTITUTION, AND LET CHIPOKA GO BACK MALAWI

  37. This is actually a very good return on investment and that’s why it did well. The current US 10year Bond yield is about 1.76% and the stock market is not doing so well so people are looking for more “secure” investments in government debt. Now the risk is whether the Zambian government will honor the debts and do it in such a way without having to print money when due in 2022.

  39. Some Eurozone countries are offering 10 year notes with a higher yield such as Spain at about 6.4% but unlike Zambia these are countries in crisis. They are raising money to glue together collapsing economies which has helped Zambia in it’s initial offering. Zambia should be able to raise more in the next series, however it must be directed into infrastructure development as promised as this will push private investment into other sectors too and reduce dependency on copper. This is good stuff so far!!!

    • Ba ZamAmerican: Great point, I don’t think we would have to print money for that. At the rate we are going with current inflation at close to 6.5%, $750 million’s present value will be $533.8 million in future value.

      Also, please bear in mind that as our GDP increases due to FDI, Bond offering and actual organic growth in terms of real GDP, our trade surplus would increase because we have such a small market of only 13 million people, our ZMK will appreciate more against the USD.

      Intrinsically speaking, great economic gains would make the $750 million look like pocket change with prudent fiscal planning. So, I would invest this initial amount in high income generating projects like ZESCO, ZAMTEL, Zambia Railways and Road networks with toll roads, another thing we advocated for.

    • Correction: I said “… current inflation at close to 6.5%, $750 million’s present value will be $533.8 million in future value.” The actual future value at that rate of inflation would be $382.98 million. I am sorry for the mistake. I had another number I was working on.

      Just wanted to set the record straight.

    • BR- Mumba Snr: Thanks, I have learnt a few things from your comments. Thanks once again especially your indication of where the money needs to go and how to recoupe it. Zesco, toll roads; just these two would mean a lot.

  40. Not bad, but we are borrowing at a rate very close to 7% which is considered crisis level.

    Personal mortgages in england are between 1% to 5%, so individuals borrow at a lower rate here than our impoverished government.

  43. Nani atalipa hii deni kwa vile tunajua itatumiwa vibaya na hawa PF ambao hawana ujuzi wa kuendesha uchumi? Hawa majangili wa PF wanajua biashara ya tuntemba pekee na kuuza mboga kwa barabara chafu.Lazima upinzani (UPND + MMD) uweke macho kwa hizi fedha.

  44. Viva MMD…you did this one! I bet CNP has no clue what this all means…after all summer chibimba was saying the rate were useless….*****s!

  45. You need to account for that money you’re borrowing. Some of you people will not be alive when those bonds mature. You’re mortgaging our future. You don’t even seem to have any plans for the money.

  49. @Al & similar minded PF cadres: Watchdog is a popular online news forum for all Zambians, not just tongas, ok. Your hatred for tongas won’t help you in anyway. You should also realise that not every Zambian will be happy with the news that we are borrowing money. It’s also worth noting that UPND is not the only opposition party that does not agree with PF policies. Why are some of your sooooo sensitive to HH’s criticism and yet ignore exactly the same criticism from Mumba or Chipimo? Is this not confirmation that you are a tribalist.

    • I disagree; I know more than 10 people who feel like A1. We dont even read the Watchdog anymore. In fact the watchdog confirms how bitter the “educated” can be. Every PF supporter is labelled a “Kaponya”; and was labelled so even before MPs were announced. To their surprise, the list of MPs included extremely educated people. So I wouldnt say its a popular online news forum; and to be honest, even the little support their president may have gained amongst the educated kaponyas has vanished.

    • Yes you can deny it,but watchdog remains a tonga site.If you start posting “negative comments” on their site,they start blocking you so that it appears that Ha Ha is popular.This is the reason why there are very few negative comments on zd.The same zd wrote a lot of bad articles on the eurobonds that PF has failed to sell.But today they are saying it is MMD that has made possible for the sell to take place.Zd always mixes half truths with a lot of lies,that is the way they are.

  50. I think we should be less concerned about who takes credit for the successful sale and should focus on getting a detailed plan from the government on how this money is to be spent and repaid. Don’t lose sight of the fact that this is debt. We’re increasing our indebtedness and need to ensure that they money is used in value added ventures. This money is to be used  for the benefit of all Zambians. 

    It’s been said the funds will be used for infrastructure projects in transportation and energy. We need more information on this to ensure the tender processes are transparent, and the money is spent on what it was intended. And above all we should see government take the steps to pay back the money within the terms of the agreement and not have future generations stuck with the bill. 

  51. Some rogue and fake journalist from one monze online paper calling itself bakatamba ba ma mongrels told us that Zambia had failed to sell the bonds. They must be eating there stinking vomit and  :(( at the same time. wooooooooo!!!

  52. This is welcome news to all meaning Zambians,in as much as we all that the money is not for free,evryone out there with a little understanding of economics knows finace is not only vital for businesses but for the nation at large. However given that the yield to investors (meaning cost to Zambia) is a little abit high, the Zambian govt should not sit on this money but rather pump it into vital areas of the economy such as energy,infrastructure, SMEs,and the tourism sector immediately.on a personal level, the loan should atleast amount to 10 billion dollars in the coming days.It should be noted however that this is bitter-sweet victory.if the zambian govt messes up through misplaced priorities,it will be disaster.it wil be however the smartest move ever if it plays its cards right

  53. Three priority areas of investment right now are ZESCO by opening new hydropower plants, Zambia Railways by working with the Swiss and converting all trains into electric ones and building a new Inter-provincial road network with toll roads especially those connecting current productive regions into DRC.

    These three will each have an annualized hurdle rate of 23% or better to guarantee meeting interest payments at 5.625 percent annually. Depending on underwriters stipulation, half of that rate may even be payable within six months so, these projects could be immediate cash cows.

    Also, I wish MOF paid attention to what we already advocated for in making sure these bonds were callable. This means that we don’t have to wait for maturity at 10, we can retire early, increasing ratings

  54. Reminds me of that alarmist headline posted on that bogue website by those Watchpig bush journalists on August 22nd, last month, which stated that the PF government failed to sell eurobond due unstable policies and President Sata’s closeness to Zimbabwean President Robert Mugabe; what a contrast to Reuters headline. They are miserable little vile chaps who would rather see our country fail than succeed shame on you under5.

    [The popularity of the issue by Africa’s biggest copper producer reflects strong investor appetite for scarce frontier African paper.]

  55. “… more than $11 billion of orders were received for the issue … The yield was 25 basis points tighter than Zambia’s initial 5.875 percent guidance … it will be eligible for the JP Morgan EMBI Global index, increasing its appeal to major investors”

    $11 billion orders received means for every bond sold, 14.67 bids were in place, very attractive offering I must add, we could have even requested for $2 billion from our underwriters at that point and still gotten it. Someone got too excited when we increased our yield at 50% our initial offering.

    25 basis points would have been even higher if we didn’t initiate the upper limit cap, we would have ended up at 100 basis points meaning our coupon rate would have been 4.875 giving our the best rate in Africa, JP Morgan attests that

    • I love what I see, a dream come true after pushing the late Levy (MHSRIP) and he finally got it and now 10 years later we now not only have a sovereign rating but a bond issue whose offering took the world by storm.

      This is what I mean when I talk about the smart people of the Zambian Enterprise, never under-estimate a Zambian, we run a fantastic franchise with the majority of us ready to take the necessary steps to claim our destiny in the world.

      A resilient people we are, unstoppable we always prove ourselves to be. I want my Zambia back.

  56. Good morning

    The $ 750 million Eurobond is nothing compared to the  € 500 billion Eurozone bailout that just got a green light in Germany today. 

    What should worry us more than the debt is our continued heavy dependence on copper export for sustaining our economy. As some people have suggested above, this money needs to be pumped into areas like infrastructure and food security in order to guarantee long term productivity. We should not make the mistake of feasting on the hen that lays the golden egg or swallowing the last corn seed that will bring tomorrow’s harvest.

  57. Good work done PF, but use this money wisely. Don’t steal this money like what MMD did. Please PF we are pleading with you use this money wisely. Fight corruption so that we see development in our country.

    On HH and his dull cadres I guess they are very much ashamed. People who always just want PF government to fail, very useless people who have no heart for Zambians. They are dully against any thing good for Zambians. Look at how they criticized the minimum wage, the RSZ and Zamtel repossesion, and now the Bond win……what type of creatures are the HH and UPND cadres???? 

  59. Heey people , the useless website Zambian Watch Dog is not posting comments which are pro for this Bond win. I have checked they have reported but negatively. Very useless website is watch dog. My comments are awaiting dull moderation coz I know they will not be posted. Watch dog is useless.

  60. Ba Moses: Thanks a trillion, nothing of interest had been going on at LT lately, so I kept quiet but things like bonds, finance, the economy, entrepreneurship, business, discovery, deep space and putting things in place that make life worth living for the next individual is blue sky stuff for me … such things excite me blushing blue.

    I hate politics but I love policy, be blessed!

  61. One wonders as to what motive is behind Zambian watch dog. I ask myself as to weather these people are they really Zambians or not.What do they really want for this country? What ever good thing done by PF to them it’s wrong Any my only conclusion is BITTERNESS

  62. #2, DO YOU REALLY UNDERSTAND ENGLISH? SATA NEVER SAID WHAT YOU HAVE JUST LIED. HE SAID THE (RATING( AND BENEFITS OF FOREIGN INVESTMENT OR THE IMPROVEMENTS OF ZAMBIA’S ECONOMY DOES NOT TRICKLE DOWN TO THE POOR- SOMETHING LIKE THAT. WHICH IS A FACT. NOT UBO BUFI BOBE BWAPAKUNYA.

  64. To be quite honest,this Eurobond worries me if our history of handling money and state enterprises is anything to go by.As a state we let Zamtel,Zambia airways,ZR and others bite the dust because of our very poor management.I hope this Eurobond does not add to our tale of woes in managing big and complex stuff.

  65. The question not whether it’s good or bad, first of all we have all at some point borrowed money and repaid it back with interest or the emotional pressure to payback. What we need to ask is whether there is enough controls in the system to monitor this money. Who is responsible and are they capable of managing this kind of money? I think if we can answer those basic questions we can say whethers it’s good or bad or what measures need to be in place. The bottom line is we have to pay it back! Either our children will , or our grandkids 

  66. This is Rubbish!! It doesn’t mean anything until it is put to good use. Some suggestions by Mumba Sr. above are actually very good. I don’t believe your government is smart enough to head this advice though. Good luck my friends.

  68. Credit goes to the MMD as the PF claim to be following MMD budget plan and programs. its simple as Who is the father between the guy who knocked up gal 8 months ago bt got dumped  and and new guy ? PF is the step father.

  71. The issues has actually been over subscribed.. This shows the levels of confidence investors have in the stability and future economic outlook that Zambia has..Well done Ba Chikwanda. 

  73. Eurobonds were introduced by the PF not the MMD…the rating would be nothing without funds to use to upgrade or development infrastructure. The PF has made sure the B+ is now meaningful as they have managed to raise the funds Zambia desperately needs….You mean you can’t see that! What would be bad is to plunge the nation into debt without infrastructure development.

  74. There is everything wrong with a people that can derive so much joy from such unprecedented levels of borrowing. And this is Situmbeko’s initiative that CNP will now use to develop only the Northern caucases while indebting the entire nation. Anyway, watch what happens next month, this entire nightmare will fall apart.

    • Tell us your plan of developing this country without borrowing especially that the country has always had a budget deficit…the deficit is always met by donor funds with conditionalities….so since you know better propose a better plan to the PF…period!

  75. What has happened to the views of the DOGS (Zambian Watchdog) on this story entitled “PF govt fails to sell eurobond due unstable policies.”
    The DOGS are very inconsistent bitter people. They do not see any good in the PF. Just check out or compare their views on the latest story on the Eurobonds and their earlier article. People let us not just condemn blindly.

    • You are one of the all wise bloggers my friend! This ka watchdog site is just so enshrined with hatreds!
      It really paints a bad picture of our dear Zambia… I bet we should keep on trying to close it… This hh guy and his watchdogs staff are true desperadoes!

  76. Number 4 @AL your comments are terrible and i will complain to the police over your comments. This is what the police are looking for, people with such inciting comments. Please if you have nothing to say don’t comment. Where ever you are ,please be ashamed.

  77. you pf guys forget easily both the B+ rating and euro bond rating is MMD work see below reuters publication of 3rd march 2012….LUSAKA (Reuters) – Zambia is getting ready to launch a debut $500 million eurobond after receiving a B+ credit rating from Fitch this week, Finance Minister Situmbeko Musokotwane said on Thursday.

    “With this rating it means we are now ready to issue the $500 million international bond,” he told Reuters in an interview.

  78. Ndola-Chingola, dual carriage way by 2014, Zambia Railways repossed, resucitated and functional, Nitrogen Chemicals of Zambia money pumped in to resuscitate it and Mulungushi Textiles, negotiations to repossess it from Chinese co-owners. Who needs to quarel with HH, just work and leave him to address endless rallies, stopping him is just giving him unnecessary attention!!!

  80. Sata is Not Presidential Material, Insists KK.

    | September 16, 2006 | Copyright

    Sept 16, 2006 (The Times of Zambia)

    FIRST Republican president Kenneth Kaunda has insisted that Patriotic Front (PF) leader, Michael Sata is not presidential material, while two University of Zambia (UNZA) graduates have also urged Zambians not to vote for Mr Sata, saying his promises were hollow.

    In a joint statement, Lameck Lungu and Chris Mwanza said Mr Sata’s reckless utterances disqualified him from being presidential material.

    They said it was not good for a leader to claim that he would destroy houses in shanty compounds and build more in three months.

    “Mr Sata says he will build a hospital and high school …

  81. …….and thats how the money disappeared into the family forest. We need strict oversight with this money. Since the whole country is indebted and will have to pay back, the whole country needs to benefit, not only the family forest in Muchinga Province.

  82. In Zambia we love to praise and celebrate too early. Lets wait and see how well the money will be used. If it turns out that the money is well spent then we can clap and dance. For now please lets wait and see.

  84. #23 @ Nchelelebula, where do you get that name from? Is it some bird? If it is then I know where you come from. Unless your pseudo name has nothing to do with your origins. Even then I find the word too remote. It is very rare that someone can use it to refer to that bird.

  85. #76, 77@Bwalya. YOUR POST AT 76 IS OUT OF CONTEXT. WE ARE NOT TALKING ABOUT WHAT KK SAID. SECONDLY, AT 77 YOU SAID “….Lets wait and see how well the money will be used”. THIS IS THE PROBLEM WITH PEOPLE LIKE YOU. WHY DO YOU WANT TO WAIT AND SEE? WHAT WILL YOU BE DOING ABOUT IT? WHAT CONTRIBUTION ARE YOU MAKING TO ENSURE THAT THINGS ARE BEING DONE CORRECTLY INSTEAD OF FOLDING YOUR ARMS AND WAITING TO SEE OTHERS MAKE A MISTAKE? A RENOWNED USA PRESIDENT SAID ” ask what you can do for your country and not what your country can do for you” DONT BE AN ARM-CHAIR CRITIC. DONT JUST SIT LIKE A VULTURE WAITING TO POUNCE ON THE NEXT WEAKEST VICTIM.

  86. Welcome back B R Mumba Sr, i really like your comments! I wish MMD Bootlicker would say something also on the Euro Bond issue!

  89. Well done MMD, this was the work of Mutati and Musokotwane Good boys. Viva MMD bounce back into power in 2016. We know this money is going to be used very soon we will remain with nothing. MMD come back and make more money for mother Zambia.

  90. The Chinese saya great journey starts with a small step.This is precedential and a debut bond,it gives us an opportunity to do more in the future.Guys,this nkongole ain’t bad at all,we just need to invest this money wisely.In developed countries people borrow.Remember even your Kansanshi and Lumwana Mines have been built through bonds and securities and there were,they are running and contributing to our GDP.

  91. these fuc.kers the watchdog wont sleep tonight with their under 5 hh. they prayed by all means that this bond dont sell. but they didn’t know that God has his own way. Sata is a leader sent from God to deliver the pipo of Zambia from misery. ala hh alafwafe nomba kuli bitterness

  92. @B R Mumba Sr, your analysis is very deep and pleasantly economically beneficial. Are you a Zambian, and if so then you are marching to a different set of drum beats. So professional and eloquent, devoid of pettiness and gutter utterances so prevalent from the base ones of the bloggers of ZED! Well done and congratulations B R Mumba Sr. I earnestly hope the low debating bloggers can rise to your audacious submissions without rancour and beastly invectives.

  93. My comments after celebrating @B R Mumba Sr are that like individual debt, a national debt is easy to contract but can be a milestone on the neck if it is invested poorly. A debt is a shackle and unless GRZ invests the debt (other people’s money), we are leaving a huge burden for our children and grandchildren. Dont forget that our debt was some US$7 billion and we were only let off the hook courtesy of HIPC’s LP Mwanawasa/PN Magande. Let’s build our capacity to produce by investing wisely in infrastruce and jump starting industries. Thank you BR Mumba and others who have the nation at heart.

  94. How I wish government can hid to my advise. As long as the $750million will be invested wisely, you, your children and my children will benefit. But if it will be used for consumables, then we are at a loss. Invest into infrastructure, industries and so forth. What will this entail, creation of more jobs, thereby increasing the tax-base for government; When more taxes can be collected, this means government can properly take care of public infrastructure in terms of rehabilitation since it would have enough resources to spend; also putting more money into people’s pockets since they would have been in employment. Economists remember, “cash-cows” can turn into “dogs” if mishandled! Caution here! INVEST IN INFRASTRUCTURE, INDUSTRIES, MANUFACTURING……! Yes? Yes.

  96. @53. You’re a very interesting man. So from the $750m you’re going to build new hydro power plants, revamp Zamtel and build new roads! You must believe a lot in tuntemba business. My dear if you spread money on a number of projects the results will be zero ! Just pick one project for maximum impact.

    • @ Livingstone let’s try a ka budget. Hydor power $300m, roads $250m, ZRL$75m, Zamtel $50m, other facilities and services $75m.

    • How have you arrived at these figures? Do they correspond to the needs of the companies you’ve mentioned or they are just random amounts? Which power station do you have in mind that will cost $300m? Is $75 m the amount Zamtel needs and for what? I would rather the whole amount was spent on transport infrastructure especially the export and import routes. You need to resurface the Great North Road. Resurface the Chingola / Solwezi Rd. And resurface the Solwezi/Kasempa to Kaoma Rd. This way you will open up and diversify the external trade routes to the ports of Windhoek , Dar and Durban. Exporters and importers will have a choice of routes through the western, southern, and northern routes!

  99. We are simply borrowing and there’s nothing exciting about this. After all Kaunda was an expert at this sort of stuff. In 1991 our debt was as high as $7.2 billion while our GDP was a paltry $3.3 billion. That was a debt to GDP ratio of over 200%. We should only get excited after seeing the the tangible projects on which the money had been spent. It is too early to be popping the champagne bottles. I want in 2 to 3 years to point at a project and say that was $750m well spent.

    • There mere fact that this is possible now is cause for positive comments. The borrowing of the Kaunda days was not based on anything like bond issue, which has stricter considerations. The UNIP borrowing was mainly on bilateral and multilateral terms with foreign countries and WB/IMF. I agree with you that a debt is a debt but hey, what options do we have under the circumstances? You are also right in pointing out that what we shall spend the money on will matter most. It must be on things that will move the economy into another gear.

  101. Don’t worry every government borrows and besides at this yield rate it’s manageable. I see a cumulative total daily interest repayment of US$158,000 on this 10 year Bond. This is equivalent to one truck load or 608 bags of maize exports every day or 365 truck loads per year. I am sure we can manage this debt load. Besides the more maize we grow using the local currency kwacha the more dollars we can borrow. For instance if we want to increase this Bond to US$1.5 billion, we’ll need two truckloads of maize exports per day.  Or we can get a consortium of commodity brokers to secure/insure the maize. And if we want US$3 billion its 4 trucks per day or 1460 truckloads per year to Congo DRC and Zimbabwe who already consume un accounted double the amount. 

  102. Don’t worry every government borrows and besides at this yield rate it’s manageable. I see a cumulative total daily interest repayment of US$158,000 on this 10 year Bond. This is equivalent to 608 tons of maize exports every day or 5548 truck loads per year. I am sure we can manage this debt load. Besides the more maize we grow using the local currency kwacha the more dollars we can borrow. For instance if we want to increase this Bond to US$1.5 billion, we’ll need 11,096 truckloads of maize exports per day. Or we can get a consortium of commodity brokers to secure/insure the maize. And if we want US$3 billion its 4 trucks per day or 22191 truckloads per year to Congo DRC and Zimbabwe who already consume un accounted double the amount.

  103. @Livingstone, the mere fact that this is possible now is cause for positive comments. The borrowing of the Kaunda days was not based on anything like bond issue, which has stricter considerations. The UNIP borrowing was mainly on bilateral and multilateral terms with foreign countries and WB/IMF. I agree with you that a debt is a debt but hey, what options do we have under the circumstances? You are also right in pointing out that what matters most is what we shall spend the money on. It must be on things that will move the economy into a higher gear.

  104. Mr.B R Mumba, Sr, thank you for insightful analysis on the bond as a financial instrument. I learnt 1 0r 2 things. This is very good news and we should indeed keep the champaign bottles corked until we are informed of the projects on which our government will spend the money and only at comnpletion of these projects can we pop. I for one has alot of faith in the economic policies and planning acumen of Alexander B. Chikwanda and Miles Sampa. Gentlemen, now that you have raised the money, you have serious work. Let’ see!

  105. @stud.Fantastic point. Its not about getting the more but how we use it.Soon we are going to have contracts given to companies that cannot do the work, companies doing poor quality work or even companies that do not exist at all.By the time we realise some few individuals would have belt mansions in france bahamas and other well known paces leaving the majority zambians poor YET AGAIN using the same.Lets discuss issues accountability and the quality of infrasture we should expect.

  106. lets hope the hyenas won’t lend this deibt to their girls freinds in malawi.if your home is striken with femine don’t keep alot of dogs and cats youwil just worsen the stuation.

  107. BR MUMBA big man you always impress me.i wish one day you will come to zambia and lecture these UPND cadres about economics . God blessings my brother.

  110. My Observation is that most bloggers on this subject dont even understand it. It’s too technical. Ask yourself, if your mother or grandmonther or whatever in the village asked you what a EUROBOND is, what would you say? Gift? Grant? Loan? Shame on jus that after HIPC we should be celebrating more loans instean of collecting revenue from our assets, natural resources etc through such ventures as windfal taxes.

  111. Hello all Zambians out there. Since when did people celebrate debt? Africans have always celebrated profit That’s why we have n’cwala and such ceremonies. Its the yield that needs to be celebrated. And who are our underwriters here?

  112. We should not be so excited about this bond. How much interest are we going to be paying annually for this. About $45million per yeat. In 10 years that is a lot of money. However we need to approve how that money is used by our parliamentary system of government. Leadership code should come back in Zambia so that people like Liato are dealt with.

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