The $55 million Agricultural Marketing Authority (AMA) grain purchase bills floated by CBZ Bank in June registered a 96 percent success rate, the bank announced yesterday.
The bills, which were floated on June 1 2014, have a 270 day tenure and an interest rate of 10.5 percent and raised $53 million. The paper was floated to fund the procurement of maize produced during the 2013/14 agricultural season.
“As a result, the Grain Marketing Board (GMB) has successfully paid for 141 000mt out of 250 000mt of maize delivered to their various depots,” CBZ said in a statement.
CBZ Bank is expected to come to the market with a second issue of $50 million to raise funds to pay farmers for maize delivered to the GMB in the 2014/15 grain selling season.- The Source