White & Case advises Republic of Zambia on landmark debt-for-energy conversion

Global law firm White & Case LLP has advised the Republic of Zambia on a landmark debt-for-energy conversion involving the repurchase of approximately US$1.3 billion of outstanding bonds, funded in part by a US$600 million loan from the African Development Bank ("AfDB").

"This transaction represents a genuinely novel application of sovereign debt management," said White & Case partner Melissa Butler, who co-led the Firm's deal team. "Zambia has demonstrated how a country can use an innovative financial structure not simply to manage its balance sheet, but to translate that into real and lasting infrastructure investment for its citizens."

The transaction, which achieved nearly unanimous participation in the buyback of the existing bonds, will redirect US$275 million in debt service savings over 15 years directly into a new Grid Resilience Program for the modernisation and expansion of Zambia's national electricity distribution network.

The Grid Resilience Program will use its funding to strengthen and modernise Zambia's electricity distribution infrastructure, with a focus on reducing technical losses, eliminating network bottlenecks, improving system reliability and expanding access to underserved communities and businesses.

GreenCo Power Services, a member of the Africa GreenCo Group, has been identified to co-ordinate implementation of the Grid Resilience Programe.

Lazard Frères acted as financial adviser to the Republic of Zambia. Citigroup acted as dealer-manager in the tender offer for outstanding notes.

The White & Case team which advised on the transaction was led by partners Melissa Butler (London), Christophe Wauters (Brussels), Stuart Matty and Ian Clark (both London), and included counsel James Clarke and associates Dimitrios Lyratzakis and Jack Adachi (all London). The team also drew on project finance expertise from partner Deji Adegoke and associates Ekaterina Logvinova and Miebi Inokoba (all London).

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