ZAMBIA’s EURO BONDS APPRECIATE
By Joshua Jere
Zambia’s Euro bonds and currency have appreciated following UPND leader HAKAINDE HICHILEMA’s victory in the 2021 Presidential election.
According to financial publication BLOOMBERG, the one billion-dollar Eurobonds which fall due in 2024 appreciated by 10 percent to trade at 73-point 56 cents from yesterday’s price of about 68 cents.
The author of the story Mathew Hill says this means that investors in the bonds have confidence in the new administration.
He said it also means that the investors holding the bonds can sell the debt to other people and make a 10 percent profit today.
Bloomberg says the 10 percent appreciation in the bond is the biggest since April 2020.
Bloomberg also reports that the Kwacha also surged the most since November 2015 to trade at 19 Kwacha 15 ngwee to one US dollar.
The publication further says Mr. HICHILEMA, 59, plans to seal a bailout from the International Monetary Fund -IMF- as soon as technically possible and initiate debt-restructuring talks.
On Wednesday before voting day, according to the bank of Zambia, the Kwacha was trading at 19 kwacha 34 ngwee to one US dollar.
By close of business today, the kwacha was trading at 19 kwacha 15 ngwee against the greenback.