By Ndafadza Madanha
THE Infrastructure Development Bank of Zimbabwe (IDBZ) has listed two bonds on the Financial Securities Exchange Fixed Income Board (FINSEC).
The bonds worth US$65 million are intended to raise capital for IDBZ energy projects.
Speaking at the official listing of the bond permanent secretary in the ministry of Finance Willard Manungo said the bonds will provide flexibility to investors and help the bank achieve its objective of deepening financial markets.
“In addition, the capital market continues to provide a viable alternative investment avenue for institutional investors. Therefore, in the fullest of time, we expect the debt capital market to grow to the same levels as our already developed equities market
As highlighted by his Excellency, the President, Government is crafting policies that are predicted on creating conditions for investment led economic recovery.
I am therefore hopeful that investors will continue to support investment in key infrastructure in order to ensure sustainable socio-economic development of our country and job creation.
On the other hand, the IDBZ will continue to play its part by structuring its Funding instruments in a way that provides adequate comfort to investors, thus marking the Bank a preferred Issuer in the market,” said Manungo.
Some of the projects to benefit from the bonds are the US$15million ZETDC prepaid meter project and the Kariba and Harare power station projects.
The IDBZ has a mandate to mobilize resources to finance infrastructure and developmental projects in the areas of energy, transport, water, sanitation, information communication technology and housing for the promotion of inclusive economic growth.
The bank is also expected to assist local authorities in project preparation to bankability stage and in the process strengthening the case of obtaining bonds borrowing power certificates from the parent ministry.
IDBZ also plans to spearhead the revival of the Municipal Bond for financially strong and disciplined local authorities as a way of complementing the limited budgetary resources set aside for financing bulk infrastructure development and rehabilitation.