Zimbabwe: CBZ raises $100m bond to boost lending
The sum is part of a $200 million effort to support the economy.CBZ Bank has raised around $100 million (€88.5 million) through a bond to boost lending to productive sectors and small and medium-sized enterprises, executive Never Nyemudzo has said.
The sum is part of a $200 million envelope the bank intends to raise to support the economy, backed by the Africa Export and Import Bank.
"We have just raised $100 million and we are now working on the second batch," Mr Nyemudzo told the Herald Business.
He added that CBZ has earmarked $300 million for construction of low cost houses in the medium term.
The announcement comes after the African Development Bank (AfDB) urged Zimbabwe to implement policies that ensure access to credit to support the performance of the manufacturing sector that has recently been showing signs of improvement.
"Four manufacturing firms intend to invest about $27 million (€24 million) in their production processes. Policies that ensure access to credit and improve the general investment climate could complement such efforts," it said in a note.