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Copperbelt Energy Corporation Plc (CEC) announced the registration of its USD 200 million green bond with the Securities and Exchange Commission on the sidelines of the COP 28 Climate Summit. This registration of the Green Bond is a first for Zambia’s capital markets and is expected to attract more green finance to the country.
The USD 200 million Green Bond, structured as a program, whose proceeds will accelerate the actualisation of at least 200MW of renewable energy and specifically solar energy with possible storage implementation. The Zambian Government has developed a Green Growth strategy, which is part of its aspiration to become a prosperous middle-income country by 2023. The Green Growth strategy is Zambia’s blueprint for greening the economy and the environment by deliberately pursuing a development trajectory that is resource-efficient, low carbon, climate resilient, and socially inclusive.
The Government has put in place two regulatory frames that are being leveraged to raise green investments, these being the Green Bonds Framework issued by the Securities and Exchange Commission in 2019 and the Green Loans Framework issued by the Bank of Zambia, stated Collins Nzovu Zambian Minister of Green Economy and an Environment Engineer.
He added that the Government has put in place two regulatory frames that are being leveraged to raise green investments, these being the Green Bonds Framework issued by the Securities and Exchange Commission in 2019 and the Green Loans Framework issued by the Bank of Zambia.Eng. Njovu congratulated CEC for successfully registering the country’s Debut Green Bond, further commending the private sector’s leadership in showcasing Zambia’s prowess in the green energy transition.
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The US$200 million bond program has its first tranche of US$54 million, closing by the end of the year. The lead arrangers of the Green Bond are Cygnum Capital, with Emerging Africa Investment Fund (EAIF), as the cornerstone investor in partnership with Absa Group. The Bond will open and close within December 2023.
