Source: IDBZ lists $65m bonds – DailyNews Live
BUSINESS WRITER 30 November 2017
HARARE – The Infrastructure Development Bank of Zimbabwe (IDBZ) on
Wednesday listed its $65 million bonds it issued in 2014 for energy
infrastructure projects on the Financial Securities Exchange.
Finsec chief executive Collen Tapfumaneyi said the listing of these bonds
by IDBZ demonstrates confidence in local capital markets and “is an
important signal to both local and international investors that indeed our
economic recovery and growth is well and truly underway”.
“The new political dispensation provides further impetus for accelerated
growth and development of our infrastructure to prepare our country for
the anticipated upsurge in investments, as well as upscaling and retooling
of local industries,” he added.
Finance ministry permanent secretary Willard Manungo said the maiden
listing of the energy bonds was a very positive milestone which provides
flexibility to investors in terms of investment period, and also helps
IDBZ to achieve its objective of deepening capital markets.
“In addition, the debt 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,” he
said.
Manungo further indicated that going forward government will continue to
work with the infrastructure development bank to ensure that it is well
capacitated to enable it to strategically fulfil its mandate in
infrastructure development.
“On its part, the bank structures its infrastructure bonds as
self-liquidating instruments on the back of cash flows from the underlying
projects, while government lends its support to the bank’s capital raising
initiatives by providing various enhancements which make the instruments
attractive to investors,” he said.
The support includes issuing of government guarantees, tax exemption
status and prescribed asset status.
“It is also important to note that whilst the bonds are guaranteed by
treasury, the bank’s instruments continue to perform in line with their
terms and conditions, without any incidences of missed or delayed
payments.
“This is testimony to the bank’s structuring capability and the
credibility of the instruments,” Manungo said.
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