GRZ Bonds in Zambia
A practical guide to Government of the Republic of Zambia bonds: how coupons work, how much you need to start, the accounts required, auction dates, risks, taxes and how bonds may fit into your portfolio.
What Is a GRZ Bond?
A GRZ bond is a debt investment issued by the Government of the Republic of Zambia through the Bank of Zambia.
When you buy a bond, you lend money to Government for a specified period. Government pays coupon interest, normally every six months, and repays face value at maturity, subject to the bond’s terms.
Face Value
The amount used to calculate coupons and normally repaid at maturity.
Coupon Rate
The stated annual interest rate applied to the bond’s face value.
Yield
Return based on purchase price, coupon cash flows and time to maturity. Coupon rate and yield are different.
Coupon Rate vs Yield ExplainedCalculate Your GRZ Bond Coupon Income
Enter your bond face value, coupon rate, term and payment frequency. Calculate your gross coupon income, withholding tax, handling fees and net income.
Coupon Income Breakdown
How the Calculation Works
- Gross annual coupon = Face Value × Annual Coupon Rate.
- Gross coupon per payment = Annual Coupon ÷ Payments Per Year.
- WHT = Gross Coupon × Tax Rate.
- Handling Fee = Gross Coupon × Handling Fee Rate.
- Net Coupon = Gross Coupon − WHT − Handling Fee.
- Total Net Coupons = Net Coupon × Number of Payments.
Coupon income is calculated using face value. Your actual purchase price can differ if the bond trades at a premium or discount.
These are illustrative coupon cash flows, not investment profit or yield to maturity. The calculation assumes payments are made as scheduled and the bond is held for the full selected term. It excludes purchase-price differences, accrued interest, inflation and reinvestment.
Explore More GRZ Bond Calculators
Visit our Financial Resources page for additional tools as they become available.
How GRZ Bonds Work
New bonds may be issued at par, a discount or a premium. Reopened bonds are priced according to the applicable auction terms.
Always review the latest prospectus to confirm tenors, coupons, settlement dates and conditions.
Read about the 2026 GRZ Bond Market Changes .
| Term | Meaning |
|---|---|
| Primary Market | Buying through a Bank of Zambia bond auction. |
| Secondary Market | Buying or selling existing bonds through appropriate intermediaries. |
| Non-Competitive Bid | Specifying face value while accepting auction-determined pricing terms. |
| Competitive Bid | Specifying a yield subject to competitive allotment. |
How Much Do You Need to Start?
Under the September 2026 Bank of Zambia auction conditions, non-competitive bids could start at K1,000 face value, with competitive bids starting at K500,000.
Verify current requirements in the latest auction invitation.
A reopened bond bought at a premium may cost more than its face value. Accrued interest and other applicable charges affect the settlement amount.
Use our GRZ Bond Reopening Price Calculator .
Reference: Bank of Zambia September 2026 Bond Prospectus .
Accounts Needed to Invest in GRZ Bonds
Local Bank Account
Used for settlement, coupon payments and maturity proceeds.
Bank of Zambia CSD Account
Records the Government securities held in an investor’s name.
Investor Portal Access
Enables eligible investors to register, participate in auctions and view their securities holdings.
Where Do You Open the Accounts?
Use the Bank of Zambia Government Securities Investor Portal or seek assistance from a participating commercial bank.
Visit the BoZ Investor Portal →For a complete checklist, visit Get Started Investing .
Step-by-Step: Buying a GRZ Bond
GRZ Bond Calendar, Invitations and Results
Bank of Zambia publishes official auction dates, invitations and results.
View Official Bond Calendar & Results →The Role of Bonds in a Portfolio
GRZ Bonds can provide scheduled coupon income and support financial planning. However, investors must consider inflation, interest-rate and liquidity risks.
Income
Coupons can support cash-flow needs, subject to taxes, fees and payment conditions.
Capital at Maturity
Holding to maturity avoids having to sell at an interim market price, but issuer and inflation risks remain.
Diversification
Bonds can complement other investments, although concentration risks still need management.
Key Risks to Understand
| Risk | Why It Matters |
|---|---|
| Interest-Rate Risk | Bond market prices normally fall when market yields rise. |
| Inflation Risk | Future money may buy less as prices increase. |
| Liquidity Risk | Selling before maturity requires a willing buyer. |
| Reinvestment Risk | Future coupons may be reinvested at lower rates. |
| Concentration Risk | Excessive exposure to one security or asset class increases risk. |
| Issuer Risk | The issuer may experience difficulty meeting payment obligations. |
Tax and Handling Charges
The referenced 2026 bond prospectus specifies 20% withholding tax and a 1% handling fee on coupon interest.
The calculator uses these percentages as editable default assumptions. Check the applicable rates for your particular investment.
Withholding Tax (20%): K800
Handling Fee (1%): K40
Net Coupon: K3,160
More Tools to Understand Bonds
Visit our Financial Resources page for calculators, ebooks and practical educational tools, including new calculators as they are developed.
Explore Financial Resources & Calculators →Learn More About GRZ Bonds
Continue learning through our articles on Government Bonds, Treasury Bills, auctions, yields, tenors and fixed-income investing in Zambia.
Learn How to Invest in GRZ Bonds
Join our beginner investing classes to understand auction prospectuses, coupon rates, yields, account opening and the investment process.
Explore GRZ Bonds Beginner Classes →
Bank of Zambia Introduces 20-Year Government Bond
Treasury Bills and Government Bonds in Zambia: A Beginner’s Guide
From T-Bills to 15-Year Bonds Which Tenor Is Right for Your Portfolio?
Frequently asked questions
What is the minimum amount for a GRZ bond?
Current non-competitive auction bids start from K1,000 face value. Competitive bids currently start from K500,000. Verify the latest prospectus before bidding.
Do GRZ bonds pay interest monthly?
No. Coupon interest is generally paid every six months on the dates specified for the bond.
Can I sell a bond before maturity?
Yes, through the secondary market if a buyer is available. Bank of Zambia does not redeem bonds early, and the market price can be above or below face value.
What happens when the bond matures?
The face value is paid to the bank account registered on your BoZ CSD record, subject to the bond terms and correct account information.
Is the highest coupon always the best bond?
No. Consider price, yield, maturity, inflation, liquidity, tax, fees and how the cash flows fit your goal.
Is coupon rate the same as yield?
No. Coupon rate determines interest on face value. Yield also considers purchase price and future cash flows.
How is net coupon income calculated?
Net income equals gross coupon less applicable withholding tax and handling fees.
Does the coupon calculator on this page calculate yield?
No. It calculates illustrative gross and net coupon payments. Yield requires additional inputs including purchase price and payment dates.
What is the difference between a GRZ bond and a Treasury bill?
A Treasury bill is a short-term Government security normally purchased at a discount and does not pay semi-annual coupons. A GRZ bond runs for a longer period and pays coupons according to its terms.
Do I need to be a Zambian resident to buy GRZ bonds?
No. Bank of Zambia states that individuals, businesses, institutions and foreign entities are all eligible to buy Government securities. The only condition is that every investor must have a local bank account.
Where can I find current GRZ bond rates, auction dates and results?
Bank of Zambia publishes each auction’s invitation (prospectus) and results on its Government Bonds page, and planned auction dates on its GRZ Securities Issuance Calendar. Coupons and yields change from auction to auction, so check the latest documents before you bid.
When is the next GRZ bond auction?
The Bank of Zambia plans bond auctions on 20 November and 18 December 2026. See the auction calendar for dates, tenors and how to take part.
How do I work out the price of a bond?
Enter the coupon, dates and the BoZ cut-off yield in the free GRZ bond calculator to see the clean price, accrued interest and total cost.
What does the September 2026 rate cut mean for bonds?
The policy rate fell to 10.75%. New auctions may offer lower yields, while bonds bought earlier at higher yields may rise in price.
Should I buy the 20-year bond?
It suits money you will not need for a very long time. Read the 20-year bond guide for the coupon, auction dates and risks.
Learn how GRZ Bonds work in practice
Join the next weekly GRZ Bonds class and learn how to understand auction documents, coupon rates, yields, tenors, settlement and the practical process of investing in Government securities.
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