BrandArena: First National Bank co-arranges IFC Second Zambezi Bond to strengthen Zambia’s capital markets

Friday 8 September 2023

First National Bank co-arranges IFC Second Zambezi Bond to strengthen Zambia’s capital markets

First National Bank (FNB) Zambia participated as co-arranger in the recently issued International Finance Corporation (IFC) Second Zambezi Bond for ZMW 193.2 million. The bond was issued to boost the development of the country's domestic capital markets and to expand access to local currency finance.

IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets, that include Zambia. The organisation works in more than 100 countries using capital, expertise, and influence to create markets and opportunities in developing countries.

This is IFC's second kwacha-denominated bond after the corporation placed the first bond, issued by a non-resident issuer, in Zambia's domestic capital markets in 2013. The issuance is the corporation's first floating rate note in Zambian kwacha and forms part of IFC's registered Medium Term Note programme in Zambia, as well as IFC's Pan-African Domestic Medium-Term Note Programme (PADMTN). IFC has committed to the exploration of additional issuances in the currency in future to raise funding for its investment projects in the country.

With 14 years of operating in Zambia, FNB continues to grow its corporate and investment banking offering and have worked with notable global corporates spanning key sectors that include mining, infrastructure, agriculture, manufacturing, FMCG, and the financial services sector. The bank is working to complement government efforts of spurring growth in the economy through strategic access to finance.

“Leveraging on our international expertise, FNB is aptly poised to complement IFC’s work to extend key access to finance. This will accelerate business growth in the country and across borders and is aligned to the bank’s goal of helping to create a better world by offering real intuitive help,” said Bydon Longwe, FNB Zambia Chief Executive Officer.

FNB Zambia Head – Corporate and Investment Banking, Luyanga Mufungulwa added: “We are pleased to have worked with IFC on its second kwacha Zambezi Bond issuance given the growth potential of our economy that is culminating into tangible progression. Market development through access to finance is one of our strategic priorities. This transaction represents a critical milestone in building our credentials in the domestic capital market.”

FNB Zambia has demonstrated a steady and focused growth trajectory to become one of the most trusted and respected names in the banking sector serving retail customers, small to medium enterprises, and local and multinational corporate clients with a comprehensive suite of Corporate and Investment Banking products and services.

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