Investing.com — Zambia’s government is moving toward negotiations with a group of bondholders who have blocked its attempt to buy back a $1.36 billion bond ahead of a coupon increase scheduled for later this year.
The bondholder group may soon sign non-disclosure agreements to start confidential discussions about the government’s tender offer launched last week, according to Bloomberg News, citign people familiar with the matter who requested anonymity due to the private nature of the talks.
A separate person familiar with the situation said Zambia remains willing to hear the bondholders’ positions and explain its reasoning for the transaction, but no formal negotiations are currently underway.
Spokespeople for Lazard & Co. and White & Case LLP, which are advising the government on the deal, did not respond to requests for comment.
The African nation seeks to retire a 2053 bond before a coupon step-up takes effect later this year. A creditor group now holding more than 25% of the securities has assembled a blocking position, preventing the government from using a clean-up call provision that would allow it to redeem the remaining bonds.
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