Zambia has received overwhelming support from investors for an early buyback of its US$1.36 billion

Zambia has received overwhelming support from investors for an early buyback of its US$1.36 billion sovereign bond, with 97.85% of bondholders agreeing to the offer before the 9 June deadline. Under the deal, investors will receive about US$828.68 for every US$1,000 of bond value. This allows Zambia to reduce its debt by about US$230 million and avoid higher interest payments that were expected in the coming years. The transaction is expected to be completed around 15 June 2026. The buyback is being financed through a US$600 million loan from the African Development Bank (AfDB), which offers lower interest rates and longer repayment periods. This will reduce Zambia's debt servicing costs and create more room for government spending on development programmes. Because participation exceeded the required 75% threshold, Zambia plans to redeem all remaining bonds by 25 June 2026, bringing the debt obligation to an end. Fitch Ratings has stated that the transaction is not a distressed debt exchange, noting that Zambia remains capable of meeting its obligations. The agency described the move as a proactive step to improve debt management. The buyback is another important step in Zambia's economic recovery following its 2020 debt default and the restructuring of about US$6.3 billion in bilateral debt under the G20 Common Framework