Online Reporter
Business Reporter
CBZ Holdings is set to launch a $600 million infrastructure bond soon, with the first tranche of $100 million expected to hit the market within the next fortnight, group chief executive Lawrence Nyazema has announced.
The move comes as Zimbabwe’s private sector seeks to take the lead in addressing the country’s chronic infrastructure deficits, particularly in roads, which Mr Nyazema described as a “crying out loud” for leadership.
“For too long, we have been relying on the fiscal to finance roads from their cash balances. No one does that in the world,” Mr Nyazema said.
CBZ will inject $75 million into the inaugural $100 million tranche, with the remaining $25 million expected to be raised from pension funds, asset managers, retail investors and other financial services players.
“In the unlikely event that they fail to raise the remaining $25 million, we will either get it from our usual friends outside the country, or I can convince the CBZ bank board to put in the additional amount,” Mr Nyazema added.
He stressed that the initiative was about Zimbabweans taking ownership of their economic challenges.
“We are trying to ensure that we solve our economic and infrastructure problems as Zimbabweans. When the foreigners see us doing so, they will be comfortable to come and join us on the journey,” he said.
The bond forms part of a broader push by CBZ Capital to mobilise domestic capital for large-scale infrastructure projects, which Mr Nyazema said would deliver the world-class infrastructure Zimbabweans had long clamoured for.
The bond issuance is expected to proceed in multiple tranches, with the first closing within two weeks.
