IDBZ to raise $10-15m for bankable projects
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.