Online Reporter
Nelson Gahadza
Senior Business Reporter
CBZ Holdings plans to raise and list a US$600 million bond on the Victoria Falls Stock Exchange, targeting international and regional investors to mobilise long-term capital for major infrastructure and development projects.
The group indicated that US$75 million of the funding has already been secured, allowing work on some of the targeted projects to begin while preparations for the larger programme continue.
Group chief executive officer Mr Lawrence Nyazema said the bond programme would be implemented in phases, with the first tranche providing immediate funding while the group completes the more complex processes associated with listing debt instruments locally and internationally.
Mr Nyazema disclosed this in Harare yesterday at an analysts’ briefing on the group’s financial performance for the half year ended June 30, 2026.
“So, the whole programme, the first and second stage, is US$600 million. We did not want to wait for the processes that come with listing bonds in Victoria Falls and outside the country.
“That is why the first tranche is going to be US$100 million.
“We have simply said, before we do the more complicated paperwork on listings, let’s get started. So, we will start with the first US$100 million and US$75 million is already in place,” he said.
The proposal comes as CBZ seeks to position itself as a major source of long-term funding for infrastructure development, with the group looking beyond traditional banking activities to participate in projects that require substantial capital.
The initial funding will support infrastructure projects, particularly road rehabilitation, while the broader programme will also create capacity for participation in water, housing, property development and other strategic projects.
Mr Nyazema said CBZ was deliberately taking a phased approach because of the scale of Zimbabwe’s infrastructure requirements.
He said the road rehabilitation programme alone could eventually require as much as US$5 billion, making it impractical to mobilise the entire amount at once.
“So when I talk of the US$600 million that will go towards the road fund, that is what we intend to do in the first and second phases. But because the road network runs into thousands of kilometres, it’s likely to be a continuing project,” Mr Nyazema said.
“That is why, as CBZ, we are keen to get international financiers and regional financiers to also come in and participate alongside ourselves.”
Mr Nyazema said the Bulawayo-Victoria Falls Road, covering just over 400 kilometres, could require about US$450 million to complete, based on an estimated construction cost of around US$1 million per kilometre.
The Harare-Chirundu Road, stretching for about 350 kilometres, could require a further US$350 million, while approximately US$35 million would be needed to complete outstanding works on the Harare-Beitbridge Road.
Mr Nyazema said CBZ’s plans are therefore not limited to the US$600 million programme, with the group seeking to attract international financiers who can participate in subsequent phases of infrastructure development.
Mr Nyazema said the group would use the VFEX listing as part of a broader strategy to reach investors outside Zimbabwe.
VFEX is a licensed securities market in Zimbabwe.
It is a United States dollar-denominated stock exchange based in Victoria Falls that allows companies to list and raise capital through equities, debt instruments, exchange-traded funds (ETFs), and real estate investment trusts (REITs).
“The reason for that is we intend to attract international and regional funds to come into the bond. We are not stopping at US$600 million. We want to play a very active role in the infrastructure and projects that are required in this country,” he said.
The group is also expected to conduct roadshows in major financial centres to market the bond and infrastructure opportunities to institutional investors and other capital providers.
The process, he said, would require CBZ to actively engage investors rather than rely on international capital to come into the market without direct engagement.
“I don’t think you can sit here in Harare and expect international capital to just come on its own. You will need to go to New York, you will need to go to London, to Joburg, to Cape Town, and talk to the owners of the capital,” he said.
The roadshows are expected to focus on demonstrating the commercial viability of the projects, the returns available to investors and the mechanisms for ensuring timely repayment.
Mr Nyazema said CBZ had about six months to undertake preparatory work for the larger funding programme, including investor engagement and the necessary structuring and listing processes.
The group wants construction and rehabilitation works to commence before the onset of the rainy season, while the larger US$500 million component of the programme is being structured.
“Whilst we are putting the structures together for the half a billion, it means work would have started. And we want to start the work before the rainy season starts,” he said.
He said CBZ expected the larger funding programme, or at least a substantial portion of it, to be in place by February next year.
The planned debt raising comes against the backdrop of an ambitious growth strategy by CBZ, which is targeting a 15 percent return on equity and 15 percent growth in assets.
The group also expects deposits to increase from about US$1,1 billion at the end of last year to at least US$1,5 billion by the end of this year, providing additional capacity to support lending and investment activity.
CBZ is separately pursuing new lines of credit worth about US$150 million, with Mr Nyazema saying these facilities were expected to be concluded by the end of September.
The additional funding would complement the group’s efforts to expand lending and support its broader balance sheet growth strategy.
In the long term, CBZ is targeting a US$2 billion balance sheet by 2028, supported by a combination of debt and equity funding.
The proposed bond programme is therefore expected to become an important component of the group’s funding strategy as it seeks to expand its role in the economy beyond conventional financial intermediation.
Economist Mr Eddie Cross said the proposed capital raising was ambitious but could be within the capacity of VFEX as the market develops.
“Caledonia raised capital on this market and it was heavily oversubscribed,” Mr Cross said.
“CBZ may be being a bit ambitious, but it may prove to be within the capacity of this new market. Of one thing I am sure, this is going to play an ever-increasing role in the region, not only in Zimbabwe.”
The proposed CBZ bond would add further depth to VFEX, which has been positioning itself as a platform for foreign currency-denominated capital raising and investment.
