Govt raises US$22 million from infrastructure bonds PDF Print E-mail
Thursday, 05 January 2017 19:39

The government raised US$22 million from infrastructure bonds floated to the investing public during the just ended year.

The bonds which were floated through a government’s owned financing institution, the Infrastructure Development Bank of Zimbabwe (IDBZ) are aimed at providing capital for the upgrading of the country’s power generation plants and housing facilities.

Information released by the IDBZ to the ZBC News on Thursday indicate insurance companies and the pension funds were the main subscribers of the infrastructure bonds that attract an interest of nine percent per year.

Real Estate Institute of Zimbabwe president Mr Siza Masuku says the floating of the bonds reflect government’s commitment to achieve targets of its socio-economic development programmes.

There is need for investors to take part in the bonds to ensure economic growth says a property consultant Mr Simon Chaita.

Infrastructure bonds refer to a situation whereby the government raises additional funds from private investors in the capital markets for strategic projects with providers of the capital being assured of interest over an agreed repayment period.

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