IDBZ to raise $10-15m for bank­able pro­jects

Chronicle (Zimbabwe) - - Business Chronicle - Busi­ness Re­porter

THE In­fra­struc­ture De­vel­op­ment Bank of Zim­babwe (IDBZ) is set to raise be­tween $10 mil­lion and $15 mil­lion this quar­ter un­der the sec­ond tranche of its hous­ing bond to fund bank­able pro­jects.

Last De­cem­ber, the bank suc­cess­fully is­sued its maiden hous­ing bond for $5 mil­lion through pri­vate place­ment.

In an up­date on the $50 mil­lion bond for the Zim­babwe Power Com­pany, IDBZ ad­vised that it was in the process of pack­ag­ing a num­ber of hous­ing pro­jects.

“The bank is in the process of pack­ag­ing a num­ber of hous­ing pro­jects and shall be ap­proach­ing the mar­ket in the early parts of the fourth quar­ter of the year with the sec­ond tranche of its hous­ing bond to raise $10-15 mil­lion to fund the im­ple­men­ta­tion of hous­ing pro­jects that will have reached bank­a­bil­ity,” it said.

IDBZ said through the is­suance of in­no­va­tive and ap­pro­pri­ately pack­aged in­stru­ments, it con­trib­utes to­wards the de­vel­op­ment of a ro­bust cap­i­tal mar­ket while fa­cil­i­tat­ing the im­ple­men­ta­tion of crit­i­cal in­fra­struc­ture pro­jects.

“The bank’s strong col­lab­o­ra­tion with mar­ket play­ers will go a long way in fa­cil­i­tat­ing the mo­bil­i­sa­tion of the much needed re­sources for the im­ple­men­ta­tion of pri­or­ity in­fra­struc­ture pro­jects,” it said.

In 2014, the Govern­ment launched the Na­tional Hous­ing De­liv­ery Pro­gramme which aims at pro­vid­ing over 300 000 hous­ing units by 2018.

In com­ple­ment­ing ef­forts by the Govern­ment, IDBZ was rolling out hous­ing pro­jects ini­ti­ated un­der the Na­tional Hous­ing De­liv­ery Pro­gramme.

As a re­sult of the $5 mil­lion maiden hous­ing bond, IDBZ has availed fully ser­viced res­i­den­tial stands in New Marimba Park (Harare) and Clip­sham Views in Masvingo.

The two pro­jects are an­tic­i­pated to de­liver a to­tal of 1 042 hous­ing stands.

Mean­while, IDBZ said its $50 mil­lion ZPC bond (IDB Se­ries 2 2014B) that sought to fi­nance the power com­pany’s gen­er­a­tion pro­jects namely Kariba South Power Sta­tion ($38,8 mil­lion) and re­pow­er­ing of Harare Ther­mal Power Sta­tion ($11,2 mil­lion) has been fully sub­scribed.

“The IDBZ is grate­ful for the con­tin­ued sup­port the bank re­ceives from the in­vestor com­mu­nity in its re­source mo­bil­i­sa­tion ini­tia­tives as this demon­strates the mar­ket’s con­fi­dence in the bank’s in­stru­ments,” it said.

The in­fra­struc­ture de­vel­op­ment bank launched the first tranche of the en­ergy bonds in 2012 worth $30 mil­lion to fi­nance the pre­paid me­ter­ing project by the Zim­babwe Elec­tric­ity Trans­mis­sion and Dis­tri­bu­tion Com­pany, which was fully sub­scribed.

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