14.07.2026
Global Credit Insurance market supports AFDB in Zambia’s landmark debt-for-energy swap
14.07.26 – London: The credit insurance market, represented by Atrium Underwriters, Canopius Managing Agents, Chaucer Group, MS Amlin, Mosaic Insurance, MSIG USA, Liberty Specialty Markets, Brit Insurance, The Hartford, Mitsui Sumitomo Insurance Company (Europe) Limited, and The Texel Group has supported African Development Bank (AfDB) in its recent landmark transaction with the government of Zambia.
In a pioneering approach to development finance, the government of Zambia used a $600 million loan from the African Development Bank Group coupled with its own resources to buy back the $1.36 billion sovereign Eurobond.
As part of savings, which could have gone into future debt servicing, the Zambian government has committed to earmark $275 million, to be invested in the country’s energy sector, an approach that could be emulated by other African countries to unlock development financing.
Zambia’s bond buyback demonstrates the power of public-private partnership in development finance. By leveraging the capacity of the private credit insurance market, the African Development Bank was able to mobilise additional risk-bearing capital in support of a transformative financing package that strengthens Zambia’s debt sustainability while unlocking investment in critical energy infrastructure. The transaction highlights how private insurance can serve as a powerful catalyst for development, enabling AfDB to advance its mobilisation mandate by crowding in private sector participation and amplifying the impact of its balance sheet across the continent, delivering greater development impact for its regional member countries.
For the insurance market, the transaction highlights the growing role that private risk capital can play in addressing development finance challenges. By partnering with the African Development Bank and providing tailored credit insurance capacity, insurers helped unlock financing that might otherwise have been constrained, demonstrating how private sector expertise and balance sheets can be mobilised in support of sustainable development objectives. As development institutions increasingly seek to maximise the impact of their capital, the insurance market is well positioned to serve as a trusted partner in scaling investment across Africa and other emerging markets.
Shahin Samiy, Director at Texel, said: “We are proud to have supported the African Development Bank in executing this important transaction, which highlights the Bank’s leadership in advancing innovative and impactful financial solutions across the continent. This successful bond buyback underscores Zambia’s commitment to prudent and forward-looking debt liability management, while demonstrating the African Development Bank’s pivotal role in fostering market confidence and sustainable outcomes for its member countries.
We also recognise the constructive engagement and cooperation of the insurance market in meeting the complexities of the transaction. As broker to the African Development Bank, we are honoured to have contributed to an initiative that ultimately supports Zambia’s long-term economic resilience and development.”
Daniel Riordan, SVP, Head of Political Risk, Credit, & Surety, MSIG USA: “In line with our mission to contribute to the development of a more vibrant society and help secure a sound future for the earth, MSIG USA is proud to have supported this important transaction, which will contribute to Zambia’s sustainable development while demonstrating the vital role private insurers play in mobilizing development finance around the world.”
Natalya Tyson, Head of Public & Development Finance, Political Risk at Mosaic Insurance said: “We are delighted to support the African Development Bank in this pioneering debt-for-development transaction, which unlocks significant investment in Zambia’s electricity sector and builds on our experience in debt conversion structures across emerging markets. By combining sovereign risk mitigation with purpose-driven financing this transaction highlights the increasingly important role of insurance as a private capital mobilisation tool to enable innovative structures that strengthen sovereign balance sheets, while unlocking capital for sustainable development. This transaction is a powerful example of how AfDB continues to champion solutions that address member countries’ priorities while attracting new sources of capital to support their development ambitions. We are grateful to Texel for their expertise in structuring this placement and proud to contribute to a transaction with clear alignment to Mosaic’s development focused strategy.”
Vice President for Finance and Chief Financial Officer of the African Development Bank Group Hassatou Diop N’Sele said: “The African Development Bank remains committed to supporting Zambia’s energy sector as a key driver of economic transformation. Our current and past investments are focused on strengthening energy security, expanding transmission infrastructure, and promoting renewable energy solutions to enhance resilience and unlock sustainable growth.”
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