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The government of Zambia has allegedly
settled for Barclays and Deutsche bank as the fore-runners of its 500 million
dollars Eurobond.
This is according to Reuters, which has
quoted an anonymous source within government ranks.
The long-awaited issue is expected to be the
first debut by a sub-Saharan sovereign this year and should attract decent
investor interest given Zambia’s rapid economic growth and political stability.
The projected steady economic growth is based
on the International Monetary Fund’s forecasted 7.7 percent growth this year,
driven by rising copper and agricultural production and increased government
spending.
Since 2008, the previous government hinted on
floating a 500 million dollars Eurobond, tentatively to be used for
infrastructure development, which is expected to trigger increased economic
activity.
To this effect, Zambia has been rated at B+
by Fitch and Standard & Poor’s, against recent concerns of economic policy changes
due to the change of government last year.
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