Zambia announced that more than 75% of its 2053 dollar bonds participated in a tender, enabling the government to force a full buyback. The high participation followed a $65 million sweetener aimed at holdout creditors, clearing the path for a decisive repayment.

Under the deal, creditors will receive 84.35 cents on the dollar, with the price sliding toward 82.76 cents as support nears full coverage. The tender, launched late last month, marks the latest step in Lusaka’s effort to restore market confidence after years of fiscal strain.

By completing the buyback, Zambia removes a lingering default risk and signals to investors that it can honor sovereign obligations. The transaction should improve the country's credit profile and lower borrowing costs in upcoming issuances, delivering a tangible benefit to both the treasury and market participants.