Corpus Advises Citigroup on the Republic of Zambia’s Landmark US$1.36 Billion Bond Buy-Back

Corpus Legal Practitioners has advised Citigroup Global Markets, acting as dealer manager, on the Republic of Zambia’s landmark debt-for-energy conversion transaction, which involved the repurchase of approximately US$1.3 billion of outstanding sovereign bonds.

The transaction was funded in part by a US$600 million loan from the African Development Bank and achieved near-unanimous participation from bondholders in the tender offer. In its role as dealer manager, Citigroup played a central part in coordinating the execution of the buyback and engagement with investors.

This innovative transaction is expected to generate approximately US$275 million in debt service savings over a 15-year period, which will be redirected to Zambia’s Grid Resilience Program. The Program will support the upgrading and expansion of the country’s electricity distribution network, with a focus on strengthening capacity, improving efficiency and reliability, and widening access to energy across the country.

Lupiya Simusokwe, Partner and Head of the Banking and Finance Department at Corpus, commented:

“This transaction represents a forward-looking approach to sovereign debt management, demonstrating how capital markets solutions can be aligned with critical infrastructure development. We are proud to have supported Citigroup in delivering a transaction that not only achieved strong investor participation but also contributes to Zambia’s long-term energy resilience.”

Corpus Team

The Corpus team was led by Lupiya Simusokwe (Partner and Head of Banking & Finance) and included Sankananji Mubanga – Chilufya (Senior Associate) and Grace Kapembwa Longwe (Associate).

For more information on our Capital Markets practice, please contact: Lupiya Simusokwe at LSimusokwe@corpus.co.zm