CBZ Bank opens Zimbabwe Economic Recovery bonds

Dec 16, 2010

Tenders for Zimbabwe Economic Recovery bonds worth $50 million (€38 million) have been opened by CBZ Bank.

The bonds, which will close on January 28th, have been launched with the aim of generating medium-term funding that can be used to pay for commercial infrastructure projects, the Herald reports. Afreximbank is offering an unconditional guarantee on capital and interest for the products, which will be applied for in denominations of $100,000, rising by multiples of $1,000 to a maximum of $199,000. In a statement, the financial institution said interest in the bonds "shall be paid semi-annually". They are tax-exempt and the African Export and Import Bank will guarantee they have a four-year tenure, the news source noted. CBZ, which was established in 1980, provides products to both personal and corporate clients and is a subsidiary of CBZ Holdings, which was created in 2005.

Chief Executive Dr John Mangudya said recently that one of the bank's aims is to enhance economic growth by generating affordable medium and long-term capital.