Eurobond award shows confidence in Zambia's economy - Barclays
By Joan Chirwa-Ngoma
Sat 22 June 2013, 14:00 CAT
BARCLAYS Bank Zambia Plc managing director Saviour Chibiya says the Eurobond award bestowed on Zambia is a strong testament of the international investment community's confidence in Zambia and its growth prospects.
Barclays Bank Plc in partnership with Deutsche Bank were appointed as Zambia's Joint Lead Managers and Book Runners for the debut bond issue.
Congratulating Zambia for being awarded the first prize for the best sovereign bond in Europe, Middle East and Africa region by the Global Trade Review Finance Magazine, Chibiya stated that since its successful issuance, the Eurobond had highlighted positive aspects of the country such as natural resource wealth, economic growth, low debt-to-GDP ratio, and "a young and growing population that aptly positions Zambia for future investments which will help to improve the livelihood of the Zambian people".
The successful US$750 Eurobond issue which attracted the largest order book for an inaugural sub-Saharan sovereign bond made Zambia join other African countries such as South Africa, Nigeria, Ghana, Gabon, Senegal and Namibia which have issued similar bonds on the international market.
"The success we celebrate today of being recognised internationally is a reflection of the hard work that was done by the joint stakeholders through the support of the government. As a member and active participant of the team that brought the initiative of the sovereign bond into reality, Barclays Bank Zambia Plc is proud of the role we played in driving the country's economy to new frontiers which will help to boost the growth of our economy," stated Chibiya in a press release issued by Barclays Bank communications manager Banji Lufungulo.
"Barclays Bank Zambia Plc will continue to pledge support towards the development of our country, in an effort to help improve the country's economic performance and also build Zambia's investment portfolio in the international market. Barclays has deep rooted local expertise and coverage with unmatched global muscle positioning it well as a partner for development."
Zambia last September successfully arranged a US $750 million Eurobond for its infrastructure requirements as the government further pushes its infrastructure development agenda for the country, a basis upon which the country has been awarded.
The award organised by the Global Trade Review Magazine does not only recognise winners of the achievement and project awards but also provides investor networking opportunities.
Accepting the award at a dinner held in London last night, Chikwanda said the fundamentals behind Zambia's successful first sovereign bond issuance included the country's unparalleled political and social stability since independence in 1964.
"This includes the period up to the 1980s when Zambia was home to many liberation movements from our neighbouring countries and was, therefore, in the forefront of their independence struggles," said Chikwanda in his acceptance speech.
"From 1991, Zambia has been a vibrant multi-party democracy having discarded the one party system with a very unsalutary governance track record. Indeed my party, the Patriotic Front, came into power two years ago through a peaceful transition which inspite of the aberration of the one party system has been the hallmark of Zambia."
Labels: EUROBOND, SAVIOUR CHIBIYA
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Barclays to revamp Internet banking
By Gift Chanda
Wed 25 Jan. 2012, 13:58 CAT
BARCLAYS Bank Zambia Plc says it will invest more than K12 billion (US$2.5 million) in the next five years to revamp its Internet banking service which will be widely accessible to its customers for free.
Unveiling the bank's upgraded Internet banking service in Lusaka yesterday, Barclays Bank Zambia Plc managing director Saviour Chibiya said the bank was committed to expanding its alternate channels in a quest to offer customers world-class products, services and choice.
"To make secure Internet banking accessible for free to all our customers, we will be investing over K12 billion in the next five years," Chibiya said.
He said over the past year, the bank had introduced electronic services that had transformed customers' banking experience.
These include the SMS alert which allows customers to know of transactions on their accounts and the e-statements that ensures improved delivery of customer statements and enabling Card and PIN on Points of Sale machines to enhance security.
"In addition, Barclays Bank Zambia recently launched the Platinum Card which enables customers to transact online and make travel bookings for hotels and car hire among other features," he said.
Until recently, the bank was offering Internet banking service to a small base of its customers.
"We remain committed to investing in innovative digital banking offerings to ensure that our customers enjoy a rich digital experience that integrates their banking needs with their lifestyle. We will continue to respond to our customers' feedback so that we can continue to serve them in a way that they desire," Chibiya added.
He said with the K12 billion worth investment, all Barclays customers would have access to free and secure Internet banking, which offers them the flexibility to access their personal accounts at any time regardless of the bank's opening hours.
"We are committed to pioneering superior, quality and affordable banking services to the Zambian people. We want to ensure that our customers are given a choice in how they access our services in line with their lifestyle needs and preferences. We are rewarding our customers with great benefits," he said.
"With the Internet Banking service, Barclays customers now have the choice to make financial transactions on the Internet using one of the most secured system which guarantees the safety of funds and transaction details."
He explained that key benefits of the upgraded Internet banking service to Barclays customers include free inter-account transfers, account balance enquiries, access to loan accounts information and mini statements.
Chibiyi further said all transactions on Internet banking would be free apart from funds transfer to other banks.
He said fund transfers to other banks within Zambia would be attracting a minimal fee of K5,000 while international funds transfers would attract the normal Society for Worldwide Interbank Financial Telecommunication (SWIFT) charges.
Labels: BARCLAYS BANK, SAVIOUR CHIBIYA
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BoZ urges banks to reduce costs
By Mutale Kapekele
Fri 12 Nov. 2010, 04:01 CAT
Fundanga - Inflation is going down, government securities yield rates are down, in the third quarter there were at 4.7 per cent. Why should the lending rate be at 30 per cent?COMMERCIAL banks have been challenged to enhance deposit mobilisation through innovative products that can provide credit to fuel economic growth.
And Bank of Zambia (BoZ) governor Caleb Fundanga has urged banks to reduce their operational costs for interest rates to go down.
Responding to a press query on finance minister Situmbeko Musokotwane’s challenge that banks should reduce the interest spread between savings accounts and lending rates, Bankers Association of Zambia chairperson Saviour Chibiya called for innovation among commercial banks.
“We agree with the Minister of Finance that enhancing deposit mobilisation, through more attractive pricing and introduction of other innovative products is a key ingredient to ensuring that banks have the necessary liquidity to provide credit to fuel the economic growth of the country,” Chibiya stated.
“As BAZ we are glad to see the diverse pricing structures of banks which are published by the Bank of Zambia every quarter in the newspapers, as well as the increase in products being advertised by banks. Such marketing efforts help with product awareness and gives the consumers knowledge of their options.”
Chibiya stated that BAZ was working with the government, BoZ and other stakeholders in meeting the challenge of increasing savings in the country and reducing the number of people who did not get the benefit of financial services.
And responding to questions from the press after presenting the Bank of Zambia quarterly brief for July to September on Monday, Dr Fundanga said the central bank would not rest until equilibrium was reached on interest rates.
Currently, banks are charging an average of 19 per cent on lending while paying savings accounts holders as little as 0.2 per cent as interest.
Dr Fundanga urged banks to reduce operational costs by reducing the costs of hiring managers through training of locals to take up those positions.
“Banks are saying the cost of hiring managers is very high. This has also contributed to the high interest rates,” Dr Fundanga said.
“The solution to this is to train Zambians. There are so many graduates who are unemployed. In many countries the cost of HR Human Resource is low because their train locals. The Institute of Bankers can partner with the CBU Copperbelt University to offer degree programmes in banking.”
Dr Fundanga further said inflation, which currently stands at 7.7 per cent, was going down and that interest rates should correspond with that development.
“Inflation is going down, government securities yield rates are down, in the third quarter there were at 4.7 per cent. Why should the lending rate be at 30 per cent?”
Labels: BOZ, CALEB FUNDANGA, INFLATION, LENDING RATES, SAVIOUR CHIBIYA
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