Zambia 🇿🇲 has successfully executed the world’s first $1.36 billion debt-for-development swap.

The country repurchased its $1.365 billion Eurobond maturing in 2053, with 97.85% of investors approving the deal. The African Development Bank is extending a $600 million concessional loan to facilitate the transaction.

In return, Zambia will channel up to $275 million over the next 15 years into modernising its electricity grid and reducing power outages.

The landmark agreement cuts debt servicing costs while tying the savings directly to concrete development outcomes.