Delta Zimbabwe parent company to invest $120 million dividends in RBZ bonds

Global brewing giant Anheuser-Busch Inbev will invest more than $120 million of its dividends and fees that are trapped in Zimbabwe in the central bank’s savings bonds, Delta Corporation said today.

AB Inbev owns a 40 percent stake in Zimbabwe’s largest brewer and soft drinks maker Delta Corporation, which has been struggling to repatriate dividends and import raw materials due to a severe shortage of dollars in the economy.

Delta said last week it had abandoned a plan to accept only hard currency payments to cope with the crippling shortage of US dollars, after the government intervened.

“AB Inbev has agreed to place more than $120 million due to them in relation to unremitted dividends and fees into RBZ (Reserve Bank of Zimbabwe) savings bonds in order to reduce the pressure on the demand of foreign currency,” Delta said.

The bonds, which were introduced in September 2017, have a coupon of 7 percent and a tenure of between 12 and 60 months.- TR

(153 VIEWS)

This post was last modified on January 10, 2019 6:15 pm

Charles Rukuni

The Insider is a political and business bulletin about Zimbabwe, edited by Charles Rukuni. Founded in 1990, it was a printed 12-page subscription only newsletter until 2003 when Zimbabwe's hyper-inflation made it impossible to continue printing.