ZAMBIA’S overseas bondholders have entered into non-disclosure agreements (NDA) with the government as of Wednesday, according to three sources, a key step marking the beginning of formal restructuring talks over $3 billion of international bonds.
The country’s government is expected to share with some of its biggest international bondholders – members of the creditor committee – detailed information that forms the basis of debt restructuring talks as early as Wednesday, said the sources with direct knowledge, who asked not to be identified because talks are private.
The move comes after Africa’s second-biggest copper producer clinched a deal with bilateral creditors such as China and the Paris Club to rework about $6.3 billion of debt in June, a development that sent a signal that other pending national debt restructurings such as Ghana and Sri Lanka could also get on track.
“We first need to see Zambia’s updated macroeconomic package, which is in part why we have to get restricted,” one of the sources said.
There will be a restriction period of two weeks, with the option to extend it if both sides agree, two sources added.
A spokesperson for the creditor group did not immediately comment. Zambia’s finance ministry did not immediately respond to a request for comment.
Zambia has three outstanding dollar bonds maturing in 2022 , 2024 and 2027 , trading between 52-57 cents on the dollar.
