Zambian Capital Lusaka Seeks Advisers for Debut Municipal Bond

Lusaka, the Zambian capital, is seeking financial and legal advisers for its first municipal bond issuance.

The municipality will use the proceeds to build 3,500 high-rise apartments, the Lusaka City Council said in a statement published in the government-owned Daily Mail today.

The council plans to raise $500 million from local and international investors through what will probably be a dollar-denominated bond sale, Zambia’s Deputy Finance Minister Miles Sampa said in an interview Nov. 25. Africa’s biggest copper producer will join Nigeria and South Africa as the only countries on the continent to sell bonds to finance regional or sub-national projects.

The planned municipal debt follows Zambia’s $750 million Eurobond issue in September, the country’s first international sale, which was 24 times oversubscribed.

Bidding for financial, legal and debt arrangement services closes Feb. 7, the Lusaka City Council said. Barclays Plc and Deutsche Bank AG arranged the Eurobond sale.

Nigeria’s Lagos state sold its biggest bond of 80 billion naira ($510 million) in November to fund infrastructure projects.

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