Eurobond holders reject Zambia’s US$3b payment deferral request

ZAMBIA – Zambia’s US$3 billion Eurobond holders have rejected a request from the Southern Africa’s nation government to defer interest payments, risking it to become Africa’s first COVID-19 era sovereign default. The government of Zambia had requested its Eurobond holders to grant it a deferral of interest payments until April 2021, as it struggled with the dual burdens of fighting the pandemic and a dwindling economy. However, The Zambia External Bondholder Committee, which holds more than 40% across all Zambia’s bonds and a blocking stake in each issue, had already…

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Petra Diamonds to dispose its assets in Botswana to reduce its debt

BOTSWANA – Petra Diamonds Limited, owner of the South African mine, has announced that it has entered into an agreement to dispose of its exploration assets in Botswana due to debt increment. Petra is set to dispose 100% of its holding in Sekaka Diamonds Exploration Limited to Botswana Diamonds PLC for a total consideration of US$300,000 and a 5% royalty on future diamond revenues should any of the prospects within the exploration licenses be brought into production. The assets of Sekaka Diamonds include the Company’s three existing Prospecting Licenses in…

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Tougher times ahead as appetite for loans pushes 40% of African countries into debt crisis

AFRICA – The Managing Director of the International Monetary Fund, Kristalina Georgieva, has said that 40 percent of African countries are in debt distress. Africa’s public debt has not yet reached the proportions that triggered the Highly Indebted Poor Country (HIPC) initiative, the concerns regarding Africa’s present debt is the fact that it has risen sharply in a very short space of time more than doubling what it was five years ago. Another worrying trend is, unlike previously when most of the debt was owed to multilateral institutions like the…

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