Zambia issues $1bn dollar bond
The government issued a second successful offering albeit at steeper conditions than the debut bond. The funds have been pledged to the transport and energy sector but with no specifics as of yet. What is most important now is the execution - this money needs to be put to work efficiently, more efficiently than the pace at which the $750m was utilized. The quicker the projects are done the quicker the pay-back period will be...
Batoka Energy Holdings (Ireland) make mandatory offer for CEC minority shares
This was triggered by regulation as a consequence of minority shareholders of ZECL (CEC's parent company) being bought out by Batoka Ireland, which in effect gave 100% ownership of ZECL to the "Batoka Group". If they seriously wanted to buyout CEC minority shareholders, they would have come up with a better offer than K0.6746 per share - a discount. CEC has a lot of upside and it would be unwise for anyone holding the stock to sell at this stage in the game (and no one is obligated to sell)....
Maamba Collieries pushes back completion of 300mw plant
The company was forced to push back the completion date because ZESCO has not yet built the 330Kv transmission line from the plant. The line was supposed to be completed by August this year - the same month which the plant was supposed to go live and inject an initial 150mw into the grid. Perhaps funds from the latest Eurobond will put wheels on the transmission line project?
The ICMM released a report highlighting the mining sectors contribution to the economy
The report showed a number of key statistics - from FDI to employment impact of the sector - as well as other insights. The report concluded that there was a need for better quality data, greater scope for local content etc. Now we must remember that even though the report provides good insight, the ICMM, according to its website, represents the 'leading companies in the mining and metals industry' - pinch of salt anyone? Is it a coincidence that the report came out a week after new electricity tariffs were announced?
Expanded Protea Hotel Arcades open for business
The K80m project came to fruition this week. The number of rooms increase from 100 to 237 as well as a number of amenities. The Protea group has been on a big expansion drive in Africa and was recently acquired by Marriot International. Protea Zambia is part of a highly diversified portfolio of companies manage by Union Gold Zambia Ltd...
The LuSE All Share Index closed Friday unchanged at 5,994.50. Trading activity was recorded in PUMA, CEC, LAFARGE,SCZ and ZANACO. A total of 124,197 shares were transacted in 17 trades resulting in a turnover of K49,876.The index is poised to break the 6,000 mark any time this month...
Trying to decipher this puzzle that is Zambia by using a variety of publicly available data (structured and unstructured) in conjunction with my own skill/experience. * * *