IDBZ says $50mln ZPC bond fully subscribed

IDBZ says  $50mln ZPC bond fully subscribed

HARARE, September 19 (The Source) – The Infrastructure Development Bank of Zimbabwe (IDBZ) says the $50 million Zimbabwe Power Company (ZPC) bond flouted in 2014 has been fully subscribed and that it also plans to raise about $10 – $15 million for a housing bond .

The ZPC bond is earmarked to support the refurbishment of the Kariba hydro power station and the re-powering of the Harare thermal power station at a cost of $38.8 mln and $11.2 million respectively.

The five year bond pays a coupon rate of nine percent per annum.

“We are pleased to advise the market that the bond has since been fully subscribed,” the bank said.

The bank said it would approach the market in the next quarter to raise funding for its housing projects.

“The bank is pleased to advise the market that it 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.”

The IDBZ said the issuance of debt instruments was its way of contributing towards the development of a robust capital market while facilitating the implementation of critical infrastructure projects.

The IDBZ is mandated to promote economic development and growth and to improve the living standards of people through development of infrastructure including housing, amenities and utilities.

In 2012, the IDBZ raised $30 million to finance the pre-paid meter project implemented by the Zimbabwe Electricity Transmission and Distribution Company (ZETDC).