IDBZ gets mixed uptake on bond issues

Tawanda Musarurwa
THE Infrastructure Development bank of Zimbabwe (IDBZ) says it raised a total of $13,63 million from two housing bond issues.
The offer for the bonds officially closed on Wednesday last week.
HE Infrastructure Development bank of Zimbabwe (IDBZ) says it raised a total of $13,63 million from two housing bond issues.

The IDBZ’s first bond, the Series 1 2017B — a Variable Rate Bond, was issued to finance the development of the Sumben Housing project in Mt Pleasant.

The second, the Series 2 2017B, which comprises Fixed and Variable Rate Bonds issued, was issued to finance the development of the Kariba Housing Project.

In respect of the Sumben Housing project in Mt Pleasant, which was targeted to raise $12,2 million, IDBZ only managed to raise $1 million.

And the Series 2 2017B raised $12,53 million out of a targeted $14,9 million.

The $12,2 million proceeds that were raised via the second bond is expected to be used to finance the construction of onsite and offsite infrastructure for the development of 1,560 fully serviced high, medium and low density stands on Batonga, Baobab Ridge and Kasese residential areas in Kariba.

The bonds are split into two categories, 2-year fixed rate bonds of up to $3 million with a coupon of 8,5 percent per annum and 5-year variable rate bonds of $11,9 million with an 8,5 percent coupon for the first two years and 9,5 percent for the remaining three years to maturity.

The IDBZ has a number of ‘ambitious projects’ on its book, with this year having approved 4 projects to the tune of $108 million.

The financier has similar projects in Hwange and Harare, in addition to the development of accommodation for university students and staff.