Zambia Infrastructure Projects May Earn Citigroup, Standard Chartered Loan Backing

Written by Makula Dunbar

From Bloomberg

Zambia plans to sign a deal with Standard Chartered Plc (STAN) and Citigroup Inc. (C) for a syndicated loan of as much as $250 million in the next two weeks, said Fredson Yamba, secretary to the treasury.

The loan will help fund infrastructure projects that are pushing up the budget deficit, Yamba said. That deficit will grow to 8.5 percent of gross domestic product in Africa’s biggest copper producer this year, according to International Monetary Fund forecasts.

“We’ve been having discussions for the past one month,” Yamba said by mobile phone from Lusaka, Zambia’s capital. “We received the term sheets which we’ve been studying.”

Zambia is increasingly looking to foreign lenders to fund government plans to build new roads and power plants and upgrade rail lines as it seeks to pull the nation’s 13 million people out of poverty.