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FOR IMMEDIATE RELEASE

Government of the Republic of Zambia
Ministry of Finance and National Planning
Lusaka, Zambia
30 May 2026

The Republic of Zambia initiates a landmark debt-for-energy conversion with the support of the African Development Bank

On May 29, 2026, the Republic of Zambia (the "Republic") launched a tender offer to repurchase its U.S.$1,364,725,564 Fixed Rate Step-Up Amortizing Notes due 2053 (the "Notes") - a decisive step forward following its successful debt restructuring in 2024.

To power this initiative, the Republic has secured a U.S.$600 million loan from the African Development Bank ("AfDB") on favorable terms, complemented with the mobilization of the Republic's own resources. This milestone reflects the Republic's proactive and forward-looking approach to public debt management-one designed to meaningfully reduce its debt burden and accelerate the country's sustainable return to the international capital markets.

Central to this initiative is a transformative 15-year national Grid Resilience Program, a condition of the AfDB's support that underscores the power of linking fiscal responsibility with national development. Through investment in the national electricity distribution network, the Grid Resilience Program directly supports economic development and helps address one of the most binding constraints on growth - access to reliable and affordable electricity. The Program will be expertly coordinated by GreenCo Power Services, a member of the Africa GreenCo Group, and implemented by a newly set up entity with a board led by private sector representatives together with the Government of the Republic of Zambia, demonstrating the strength of a collaborative, mission-driven partnership.

This landmark transaction is intended to mark the successful conclusion of Zambia's sovereign debt restructuring, and herald an exciting new chapter in its proactive debt management strategy. To maximize participation and ensure the broadest possible success, the Republic has extended an attractive premium over market price to investors who choose to participate in the tender offer.

If participation in the buyback reaches 75%, the Republic will be able to activate the clean-up provision embedded in the original terms and conditions of the Notes - a forward-thinking provision negotiated with the Ad Hoc Committee of Bondholders and their international legal counsel during the restructuring process.  The provision was included to allow Zambia to redeem the Notes entirely as part of a market-friendly debt management operation to streamline its debt portfolio and lay the groundwork for a strong and sustainable return to the international capital markets. 

Approved by the AfDB Board of Directors, this transaction is poised to serve as a powerful blueprint for future similar initiatives across the African continent-unlocking much-needed financing for the development of Africa. The Republic expresses its gratitude to the AfDB for its unwavering support and looks forward to welcoming strong investor participation in this first-of-its-kind transaction. A successful transaction will pave the way for future market access by the Republic in the best possible conditions.

For the Zambian people, the benefits of this operation are both immediate and far-reaching.  By optimizing public debt management and easing future repayment obligations, the Republic will unlock valuable fiscal space in the national budget--freeing resources that can be directed toward supporting its inclusive growth reform agenda, including investments in essential services, economic development, and opportunities for Zambian citizens. In parallel, the Grid Resilience Program will help strengthen the reliability of the national electricity supply, energizing economic activity and improving everyday life for households and businesses across the country.

Details on the transaction are available in the Tender Offer Memorandum dated May 29, 2026. For additional information, holders may visit: https://projects.sodali.com/zambia.