THE Zambian Government has picked a leading french firm, Lazard Freres to provide advisory services to the Republic of Zambia in relation to the liability management of its debt portfolio.
Lazard Freres is one of the world’s leading financial advisory and asset management firm, and advises on mergers, acquisitions, debt restructuring and capital ventures.
In a statement dated 27th May 2020 and issued by Secretary to Treasury, Fredson Yamba, Kazard Freres was picked in accordance with the Public Procurement Act of 2008.
Government has since given Notice to other prospecting bidders, which included included ABSA Bank and Rothschild&Co, White Oak Advisory Ltd, Potomac, and Deutch Bank and Barclays Bank
Mr. Yamba said the successful bidder Lazard Freres will offer advisory services at a contracted sum of $5million.
Zambia is seeking to restructure its debt mostly obtained to plug an infrastructure deficit, Finance Minister Bwalya Ng’andu announced during a recent television interview.
Zambia has since effected a moratorium on new commercial debt and is seeking to cancel some loans that were contracted but not yet received or disbursed.
The global economic crisis caused by the spread of the coronavirus is also exacerbating economic risks in Africa and Zambia’s economy has not been spared.
Zambia has a foreign debt of $11.2billion which includes $3billion drawn from Eurobonds and Chinese loans obtained under project and infrastructure financing.