$250m credit fa­cil­ity gazetted

The Herald (Zimbabwe) - - National News - Zva­maida Mur­wira Se­nior Re­porter

GOVERN­MENT yes­ter­day gazetted the $250 mil­lion credit fa­cil­ity from a United King­dom-based firm, Gem­corp Cap­i­tal, whose draw-down has al­ready be­gun.

Fi­nance and Eco­nomic De­vel­op­ment Min­is­ter Pro­fes­sor Mthuli Ncube gazetted the fa­cil­ity which he and Re­serve Bank of Zim­babwe Gov­er­nor Dr John Man­gudya con­cluded in Septem­ber.

The first draw-down will first fo­cus mainly on fuel and a Gem­corp Cap­i­tal del­e­ga­tion led by head of in­vest­ment Ms Par­v­o­leta Shtereva met Pres­i­dent Mnan­gagwa in Harare on Thurs­day to up­date him on progress re­gard­ing the fa­cil­ity.

Prof Ncube an­nounced the deal in an Ex­tra­or­di­nary Govern­ment Gazette pub­lished yes­ter­day.

“It is hereby no­ti­fied, in terms of sub­sec­tion (3) of Sec­tion 300 of the Con­sti­tu­tion of Zim­babwe, that on 12 Septem­ber 2018 the Re­pub­lic of Zim­babwe, rep­re­sented by the Min­is­ter of Fi­nance and Eco­nomic De­vel­op­ment, con­cluded a guar­an­tee in favour of Gem­corp on the fol­low­ing terms – (a) the Re­pub­lic of Zim­babwe, rep­re­sented by the Min­is­ter of Fi­nance and Eco­nomic De­vel­op­ment, ir­re­vo­ca­bly and un­con­di­tion­ally guar­an­teed due per­for­mance by the RBZ of its obli­ga­tions un­der the fi­nance doc­u­ments, which in­cluded a re­volv­ing fa­cil­ity agree­ment; (b) un­der the re­volv­ing fa­cil­ity agree­ment, Gem­corp extended to the RBZ a re­volv­ing credit fa­cil­ity in an amount of US$250 mil­lion ma­tur­ing 60 months af­ter the date of sig­na­ture; (c) the pro­ceeds of the re­volv­ing fa­cil­ity agree­ment will be utilised for the pur­pose of fi­nanc­ing de­fined com­modi­ties by ap­proved importers.”

Sec­tion 300 of the Con­sti­tu­tion deals with State bor­row­ings and guar­an­tees and re­quired that the Govern­ment pub­lish in a Govern­ment Gazette any agree­ments that it has en­tered into.

Sec­tion 300 (3) of the Con­sti­tu­tion reads as fol­lows: “Within 60 days af­ter the Govern­ment has con­cluded a loan agree­ment or guar­an­tee, the min­is­ter re­spon­si­ble for fi­nance must cause its terms to be pub­lished in the Gazette.

(4) The min­is­ter re­spon­si­ble for fi­nance must:

(a) at least twice a year, re­port to Par­lia­ment on the per­for­mance of: (i) loans raised by the State; and (ii) loans guar­an­teed by the State.”

Gem­corp Cap­i­tal is an in­ter­na­tional in­de­pen­dent in­vest­ment man­age­ment firm fo­cused on emerg­ing mar­kets, for the im­por­ta­tion of es­sen­tial com­modi­ties.

It com­prises Gem­corp Fund Lim­ited, Gem­corp Multi Strat­egy Master Fund SICAV SCS, Gem­corp Africa Fund Lim­ited, Gem­corp Cap­i­tal LLP, Global Loan Agency Ser­vices Lim­ited and Glas Trust Cor­po­ra­tion Lim­ited.

It fo­cuses on emerg­ing mar­kets with a spe­cial in­ter­est in Sub-Sa­ha­ran Africa, Latin Amer­ica and Eastern Europe where the group has es­tab­lished it­self as a re­li­able long-term part­ner for sov­er­eigns and growth-fo­cused pri­vate com­pa­nies.

Brief­ing jour­nal­ists soon af­ter meet­ing Pres­i­dent Mnan­gagwa, Ms Shtereva said the fa­cil­ity would also go into min­ing, telecom­mu­ni­ca­tion and phar­ma­ceu­ti­cals.

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