THE Infrastructure Development Bank of Zimbabwe (IDBZ) plans to increase bond listing on the Financial Securities Exchange (FINSEC) alternative trading platform by more than $27 million worth of housing bonds.
This move, which was disclosed by IDBZ chief executive officer Thomas Sakala last week Wednesday, follows the successful listing of $65 million energy bonds on FINSEC last week. IDBZ listed two energy bonds on Wednesday last week, meaning that investors will no longer hold onto their bonds until maturity, but can now trade on the secondary market in full or partially.
IDBZ wants to raise about $14,9 million to develop about 1 500 low, medium and high density residential stands in Kariba. It also requires about $12,5 million to develop a housing project in Harare. “Following the listing of energy bonds the bank (IDBZ) is looking at listing some of its housing bonds once fully subscribed,” Sakala said.
“The tradability of the instruments is an important factor for investments and we will be listing some of our housing bonds and other future bonds issuance in line with practice with other markets to give investors flexibility.” The listing was the second since FINSEC was licenced last year. Old Mutual was the first to trade on the platform in December last year after it listed its empowerment shares, making up 25 percent of the group.
The government-controlled bank 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. “The maiden listing of the bank’s energy bonds is, therefore, a very positive milestone which provides flexibility to investors in terms of investment period, and also helps the bank to achieve its objective of deepening our capital markets,” said Willard Manungo, the Ministry of Finance and Economic Planning permanent secretary.