'Bond listing helps deepen capital markets'

Published: 30 November 2017

GOVERNMENT has said the maiden listing of the Infrastructure Development Bank of Zimbabwe (IDBZ) energy bonds provides flexibility to investors in terms of investment period and helps the bank to achieve its objective of deepening the capital markets.

Officiating at the listing of the IDBZ infrastructure development bonds on the Financial Securities Exchange (Finsec) fixed income board yesterday, Finance ministry secretary Willard Manungo was optimistic that investors would continue to support the bank's mandate to develop infrastructure for the betterment of the economy.

"I am hopeful that investors will continue to support investment in key infrastructure in order to ensure sustainable socio-economic development of our country and job creation," he said.

IDBZ listed two bonds – IDB Series 1 2014B infrastructure bonds with a nominal value of $15 million and IDB Series 1 2014B with a nominal value of $50 million. The two bonds become the first to be listed on Finsec.

Manungo said the debt capital market continues to provide a viable alternative investment avenue for institutional investors, adding that government hoped the debt capital market would grow to the same levels as the equities market.

Manungo said the ministry had been working flat out to ensure that IDBZ was well capitalised so that it effectively discharges its mandate.

He said government was supporting the bank's capital raising initiatives through the issuance of government guarantees, tax exemption status and prescribed asset status.

"In addition, the debt capital market continues to provide a viable alternative investment avenue for institutional investors. Therefore, in the fullest of time, we expect the debt capital market to grow to the same levels as our already developed equities market," he said.

IDBZ head of resource mobilisation Willing Zirevo said the listing gives investors the opportunity to sell off their bonds either in full or partially to reduce their holding in the bonds. A total of 80 000 bonds were traded at a volume-weighted-price of $1,011 resulting in a turnover of $80 885.
- newsday

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