HARARE, October 27 (The Source) – Zimbabwe’s infrastructure bank will next month float several bonds to the tune of $14,9 million to finance development of its housing project in Kariba.
In a notice on Friday, the Infrastructural Development Bank of Zimbabwe (IDBZ) said it had already raised $8,8 million through a private placement prior to the offer.
“The proceeds of the bond issue will 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,” IDBZ said.
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.
This year the bank has approved four projects worth $108 million. IDBZ has a similar project in Hwange and Harare as well as development of accommodation for university students and staff.