Baker & McKenzie LLP
06/30/2026 | Press release | Distributed by Public on 06/30/2026 03:34
Baker McKenzie Advises on Zambia’s Landmark Debt-for-Energy Conversion
Baker McKenzie advised GreenCo Power Services Limited ("Africa GreenCo") and Grid Resilience Initiatives Limited ("GridCo") on the Republic of Zambia's pioneering debt-for-energy conversion that combines sovereign debt restructuring with long-term investment in the country's power network.
The process, launched at the end of May 2026, involved Zambia inviting holders of its approximately USD 1.3 billion 2053 sovereign bonds to sell their holdings back to the government for cash, as part of its wider efforts to strengthen its financial position following its sovereign default. The transaction received strong support from investors, with around 97.85% of the bonds tendered ahead of the early deadline.
The buyback was financed through a USD 600 million loan from the African Development Bank ("AfDB") as part of an innovative "debt-for-energy" structure under which Zambia has committed to invest up to USD 275 million over 15 years in strengthening and modernising its electricity grid. This investment is intended to improve access to power across the country, where almost half of the population currently lacks electricity.
Africa GreenCo (a renewable energy intermediary established in Zambia in 2018 to mobilise private investment to improve energy security in Southern Africa) acted as project coordinator, structuring and facilitating the development aspects of the transaction and the establishment of the implementation framework. GridCo, a newly formed company established in Zambia for the purposes of the transaction with board representation from stakeholders including the Government of Zambia, will act as project implementer, responsible for executing and operating the grid resilience investments.
The ground-breaking transaction marks an important step in Zambia's ongoing debt restructuring efforts, while also supporting long-term investment in critical energy infrastructure.
The Baker McKenzie team was led by Banking & Finance Partner Matt Cox and Structured Capital Markets Partner James Tanner.
Commenting on the transaction, Matt Cox said: "We are delighted to have supported Africa GreenCo and GridCo on this landmark transaction for the Republic of Zambia. By combining a sovereign debt restructuring with a significant commitment to investing in the country's power network, this deal demonstrates how innovative financing can deliver both financial stability and meaningful, long-term development outcomes. It is a powerful example of how coordinated public and private sector solutions can help address infrastructure challenges and expand access to electricity."
The process, launched at the end of May 2026, involved Zambia inviting holders of its approximately USD 1.3 billion 2053 sovereign bonds to sell their holdings back to the government for cash, as part of its wider efforts to strengthen its financial position following its sovereign default. The transaction received strong support from investors, with around 97.85% of the bonds tendered ahead of the early deadline.
The buyback was financed through a USD 600 million loan from the African Development Bank ("AfDB") as part of an innovative "debt-for-energy" structure under which Zambia has committed to invest up to USD 275 million over 15 years in strengthening and modernising its electricity grid. This investment is intended to improve access to power across the country, where almost half of the population currently lacks electricity.
Africa GreenCo (a renewable energy intermediary established in Zambia in 2018 to mobilise private investment to improve energy security in Southern Africa) acted as project coordinator, structuring and facilitating the development aspects of the transaction and the establishment of the implementation framework. GridCo, a newly formed company established in Zambia for the purposes of the transaction with board representation from stakeholders including the Government of Zambia, will act as project implementer, responsible for executing and operating the grid resilience investments.
The ground-breaking transaction marks an important step in Zambia's ongoing debt restructuring efforts, while also supporting long-term investment in critical energy infrastructure.
The Baker McKenzie team was led by Banking & Finance Partner Matt Cox and Structured Capital Markets Partner James Tanner.
Commenting on the transaction, Matt Cox said: "We are delighted to have supported Africa GreenCo and GridCo on this landmark transaction for the Republic of Zambia. By combining a sovereign debt restructuring with a significant commitment to investing in the country's power network, this deal demonstrates how innovative financing can deliver both financial stability and meaningful, long-term development outcomes. It is a powerful example of how coordinated public and private sector solutions can help address infrastructure challenges and expand access to electricity."
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