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Investors have fully subscribed to the $50 million Zimbabwe Power Company (ZPC) bond that was issued by the Infrastructure Development Bank of Zimbabwe (IDBZ) to raise funds to finance power generation projects. The proceeds are meant to support the refurbishment of the Kariba hydro power station and the re-powering of the Harare thermal power station.The five year bond, which was first issued in 2014, pays a coupon rate of nine percent per annum.

“We are pleased to advise the market that the bond has since been fully subscribed,” the bank said.

The IDBZ said of the total raised, $38,8 million would go towards the Kariba refurbishment project while $11,2 million would be used for the re-powering of the Harare power station.

In 2012, the IDBZ raised $30 million to finance the pre-paid meter project implemented by the Zimbabwe Electricity Transmission and Distribution Company (ZETDC).

The ZETDC bond was fully subscribed and matured in December last year.

In 2014, the IDBZ raised an additional $15 million to fund the completion of the pre-paid meter project.

Meanwhile, the bank said it would approach the market in the next quarter to raise funding for its housing projects.

“The bank is pleased to advise the market that it is in the process of packaging a number of housing projects and shall be approaching the market in the early parts of the fourth quarter of the year with the second tranche of its Housing Bond to raise $10-15 million to fund the implementation of housing projects that will have reached bankability.”

The IDBZ said the issuance of debt instruments was its way of contributing towards the development of a robust capital market while facilitating the implementation of critical infrastructure projects.

The IDBZ is mandated to promote economic development and growth and to improve the living standards of people through development of infrastructure including housing, amenities and utilities. – New Ziana.