IFC Issues Third Zambian Kwacha Denominated Bond, Increasing Access to Local Currency Finance

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Washington D.C., December 19, 2023—IFC has issued a 234 million Zambian kwacha bond—equivalent to approximately $10 million—to support the development of Zambia's domestic capital markets and increase access to local currency finance to help shield local businesses from currency fluctuations.  

The five-year amortizing "Zambezi" bond is IFC's third issuance in the currency and is also the third time that a nonresident issuer has placed a bond in Zambia's domestic capital markets. The bond is listed on the Lusaka Stock Exchange and pays a coupon of 18 percent, 4 percent below the comparable government bond. IFC issued two previous "Zambezi" bonds—initially in 2013 and more recently in August this year.  

The bond was distributed via private placement. Proceeds will support IFC's local currency investment program in the country.  

"Increasing the availability of local currency financing is essential for local businesses and a key priority for IFC," said Martin Habel, Head of IFC Treasury Client Solutions in Africa, Europe, Middle East, and Central Asia. "With these bond issuances, IFC was able to both source local-currency funding for its local currency lending program and at the same time return to Zambia's domestic capital market after several years. Deep and liquid domestic capital markets support economic growth and development."  

First National Bank Limited and Absa Bank Zambia were the joint arrangers for the bond. The bond was issued with the support of the World Bank Group's IDA Private Sector Window Local Currency Facility which supports IFC in providing financing in local currency where other sources of local currency financing are limited.  

IFC has issued bonds in over 50 currencies, including in currencies such as Azerbaijan manat, Uzbek som, and Jamaican dollars, and often as one of the first non-resident issuers to borrow in emerging market currencies. Such issuances help to diversify the universe of instruments available in a local market and create useful demonstration effects that support further capital markets development. 

About IFC 
IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2023, IFC committed a record $43.7 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises. For more information, visit www.ifc.org.  

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