As per July 16th, FMO successfully issued its inaugural offshore Zambian Kwacha bond. The cash flows of the bond are denominated in Zambian Kwacha (ZMW) and settled in USD.
This bond issuance perfectly fits FMO’s strategy to promote local currency business. It creates more capacity for local currency lending to support private sector investments.
Furthermore, it helps developing local currency capital markets by linking international investors to domestic investment. More focus from international capital markets on local currency markets will be supportive for economic development.
This was the first transaction executed under FMO’s recently updated Debt Issuance Program and was arranged by HSBC. The bond will be listed in Luxembourg.
The bond has a maturity of 5 years, a yield of 21.5% and a notional of ZMW 104 million, which is equivalent to $10 million.
