ADJUSTMENTS IN THE GOVERNMENT SECURITIES MARKET: Bank of Zambia

2026-04-03 13:54:28 · Bank of Zambia

The Bank of Zambia, as fiscal agent of the Government of the Republic of Zambia in the issuance of Government securities, wishes to announce to the general public the developments and adjustments in the Government Securities market. These measures are aimed at promoting the growth and development of the Government securities market.

1. Introduction of New Benchmark Bonds

Effective April 2026, the 5-, 7-, 10- and 15-year Government bonds will be designated benchmark status. While the 5-year Government bond retains the status of a benchmark bond, it will no longer be issued for the rest of 2026 as its critical mass has already been reached. The 3-year Government bond will no longer hold benchmark status. To this effect, the 2-year and 3-year Government bonds will be issued and designated as non-benchmark bonds. Benchmark bonds serve as reference points for pricing other bonds and financial instruments with similar maturities.

The minimum target size for each benchmark bond is set at K10.0 billion. This means that the minimum outstanding face value amount on each of the benchmark instrument will be grown overtime to K10.0 billion. To achieve this target, Bank of Zambia will commence the reopening of benchmark bonds in April 2026.

2. Revised Auction Frequency

In the second quarter of 2026, the auction frequency for Government bonds will change to twice per quarter from once per month. Treasury bill auctions will continue to be conducted every fortnight. The Bank of Zambia will continue to publish quarterly auction calendars to provide advance notice of the auction dates.

3. Auction Sizes

In the second quarter of 2026, the auction size for Government bonds will be K6.3 billion while that for Treasury bills will be maintained at K2.2 billion. These auction sizes are in line with the Government of the Republic of Zambia’s 2026 Annual Borrowing Plan.

4. Introduction of Liability Management Operations

Government will introduce Liability Management Operations in quarter two of 2026 to enhance liquidity in the benchmark bonds and smoothen the maturity profile of Government securities. These operations will provide an opportunity to holders of selected bonds to redeem their securities before maturity in exchange for benchmark bonds. The Bank of Zambia shall announce in June the effective date and modalities of these operations.

Further, the public is advised that the auction calendar for the second quarter of 2026 is as follows:

TREASURY BILLS AUCTION CALENDAR FOR THE SECOND QUARTER 2026

T-BILL ISSUE AUCTION DATE

07/2026 Thursday, 02 April, 2026

08/2026 Thursday, 16 April, 2026

09/2026 Thursday, 30 April, 2026

10/2026 Thursday, 14 May, 2026

11/2026 Thursday, 28 May, 2026

12/2026 Thursday, 11 June, 2026

13/2026 Thursday, 25 June, 2026

GOVERNMENT BONDS AUCTION CALENDAR FOR THE SECOND QUARTER 2026

BOND ISSUE AUCTION DATE