Zambia's 2053 dollar bond slides on worries higher payout might not trigger
LONDON, Dec 19 (Reuters) - Zambia's 2053 dollar bond slid more than 1.5 cents on Friday, Tradeweb data showed, after a report from the International Monetary Fund flagged concerns the country might not hit targets needed to trigger a higher payout for bondholders.
The declines, leaving the bond bidding at 70.5 cents, came a day after an IMF report showed weaker estimates for the country's current account position and lower net reserves.
Both figures are key to calculating Zambia's composite indicator, which needs to score at least 2.69 to enable bigger payments to bondholders.
A higher CI score would see the country's debt carrying capacity upgraded from weak to medium. According to HSBC estimates seen by Reuters, the latest IMF numbers suggest the CI could reduce to 2.70 in 2026 - just slightly above the trigger target.
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