CBZ, Sakunda's $120m deal

Published: 18 December 2013

CBZ Bank Limited (CBZ) has secured a $120 million credit facility from a top European bank, businessdaily can reveal.

The money, which is expected to go a long way in easing the current liquidity crunch, was obtained with the help of its partners, including Sakunda Holdings (Private) Limited (Sakunda).

"The timing could not have been more perfect, as we (country) generally experiences a high demand of cash around this time of the year," bank insiders said this week, adding the funds had already been injected or transferred to Zimbabwe.

Other officials said the deal was "least surprising as CBZ has always been at the forefront or structured almost similar transactions" since the early 2000s.

With the fuel sector, specifically the National Oil and Infrastructure Company of Zimbabwe, and Sakunda playing a critical role in this arrangement, the money will also benefit various sectors of the economy.

Under the agreement, CBZ and its partners used their respective balance sheets, and connections to raise the cash. The development also comes as the John Mangudya and Peter Zimunya-led financial group continues boosting the country's ailing economy by pumping vast sums of money into major productive sectors, including agriculture and manufacturing.

In addition to the $100 million financing facility from the African Export and Import Bank announced in October, CBZ has also been at the forefront of other fundraising initiatives for the key extractive sector through the Agricultural Marketing Authority bills.

And as one of the country's leading farm lenders, CBZ has sunk well over $180 million into this sector, its results say. In manufacturing, the financial giant has laid out $100 million-plus.

On its part, Sakunda recently announced a $10 million gantry, and fuel handling facility in Harare ? under one of Zimbabwe's most creditable and rare private-public sector partnerships in recent times.

With a national footprint of 50-plus outlets, the privately-held company has not only emerged as one of the country's foremost energy suppliers ? in a sector once dominated by multinationals — but subject of speculation and a merger target from a western player.

Based at Century Towers in Samora Machel Avenue, the outfit is broken into five entities involved in trading, construction, logistics and property.

And to demonstrate its financial clout, and muscle, the company has experienced such rapid growth that it recently opened its flagship outlet in Mutare ? dubbed the first fully automated outlet in Zimbabwe ? run in conjunction with Innsor Africa Limited.

As one of the few local energy suppliers to remain standing after majorities have disappeared or floundered, Sakunda hopes to build such service stations from scratch "in cities and other hamlets of Zimbabwe, especially along the inter-urban motorway network".
- dailynews