Infrastructure Development Bank of Zimbabwe to issue $14.9 million bonds for Kariba housing project

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 yesterday, 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. –The Source

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