Zimbabwe: NMB Bank delays tender for bond issue
The bank has found other sources to raise funds and support SMEs' access to credit.NMB Bank has not floated another tender for its two-year $50 million mortgage-backed Small to Medium Enterprises bond issue, managing director Ben Washaya has said.
He told The Herald Business the bank managed to raise funds from other sources. "The bank managed to raise more attractive or cheaper funds from other sources so we decided to postpone the issuance of more bonds to a later date."
The bond was issued during the last quarter of 2013 to provide loans for small and medium-sized enterprises (SMEs) in Zimbabwe.
Government figures show the SME sector is largely informal with 85 per cent of unlicensed operators.
The country's SMEs Act Chapter 24:12 stipulates that a quarter of registered entities should be promoted through getting tenders as well as financial support.
According to the 2012 Finscope Survey, Zimbabwean SMEs contribute over 60 per cent to GDP and employ over 5.8 million people out of a population of 13.5 million inhabitants.