Glencore has agreed to ‘sell’ its 90% stake in Mopani Copper Mines to the Zambian government in terms of which it will offload $1.5 billion in debt.

Glencore announced on 19 January via a statemet which said a nominal $1 billion deal for Mopani Copper provided Zambia Consolidated Copper Mines (ZCCM), the state controlled miner, agreed to shoulder debt held in Mopani Copper.

According to the statement released by Glencore, the deal is funded by borrowings from Carlisa Investments Corporation, a Britisg Virgin Islands based company through which Glencore holds its stake and other members of the Glencore group.

However, the interest on the debt would be capitalised for the first three years which then be payable quartely ag LIBOR plus 3%.