IFC mulls issuing bond linked to Zambian currency

The International Finance Corporation (IFC) has proposed to issue a bond linked to the Zambian currency, the Kwacha, on the global market. in order to .

A statement issued by Zambian government on Tuesday said the move will increase the southern African nation's visibility and make markets more liquid for future issuances.

The IFC, a member of the World Bank Group and is the largest global development institution focused on the private sector in developing countries, made the proposal during a meeting with Zambia's Finance Minister Alexander Chikwanda on the sidelines of the just-ended 2015 International Monetary Fund (IMF)/World Bank Spring meetings held in Washington DC, according to the statement.

The statement said the IFC and the Zambian government agreed to hold more meetings in the coming months on the issue.

The IFC has also proposed a capacity building project for African nationals in capital markets in collaboration with American universities and that Zambia is due to participate in the initiative, the statement added.

Meanwhile the Zambian government has proposed the development of a joint facility that will enable Small and Medium Enterprises (SMEs) access funds raised through issuance of bonds.

The two parties have since agreed to hold more talks on the facility that will see a number of SMEs benefit from loans with longer financing period. Endi