Lusaka— Zambia is set to introduce a 20-year government bond, extending the maturity of its domestic debt instruments as authorities seek to deepen the country’s financial markets.
The Bank of Zambia announced the new maturity on Thursday as it released its fourth-quarter government securities auction calendar. The first auction offering the new 20-year bond is scheduled for November 20.
Until now, Zambia has issued government bonds with maturities ranging from 2 to 15 years. The central bank said the longer-dated instrument is intended to support the development and growth of longer-term financial instruments in the domestic market.
The move comes as Zambia continues efforts to strengthen its economy following a prolonged restructuring of its external debt. An International Monetary Fund mission is currently in the country for discussions on a potential new support programme.
The government is targeting average annual economic growth of 7% over the next three years as it seeks to consolidate its recovery.
Source:Reuters
Reporting:Chris Mfula
Writing:Nilutpal Timsina
Editing:Alexander Winning
