Zimbabwe plans $ 100million bond sale on dollar swap
The VFX is a US dollar-denominated exchange that started trading last October but has so far attracted only two business listings. The government hopes the stock exchange, which is owned by the Zimbabwe Stock Exchange (ZSE), will help attract foreign investors to a country struggling with a currency shortage.
Finance Minister Mthuli Ncube has previously said Zimbabwe will try to tap into the international bond market to raise funds for infrastructure. He did not answer phone calls to ask for comment. Finance Secretary George Guvamatanga also did not answer calls and messages on his phone.
A banker who was consulted and helped structure the bond sale said the Zimbabwe Public Infrastructure Development Bank (IDBZ) is arranging the bond listing while the African Import-Export Bank (Afreximbank) will provide an insurance credit.
Zimbabwe’s last local bond sale dates back almost two decades before its currency collapsed.
“This (the bond sale) will take place before the end of the year. We are finalizing the schedule and the plan is to raise up to $ 100 million,” the banker told Reuters, declining to be named. due to the confidential nature of the discussions. .
Afreximbank and IDBZ did not respond to email requests for comment.
Afreximbank was one of the few foreign lenders to continue providing credit in Zimbabwe after international institutions such as the International Monetary Fund and the African Development Bank stopped providing funds in arrears.
Zimbabwe owes more than $ 8 billion to its foreign creditors.
(Reporting by MacDonald Dzirutwe; editing by Emelia Sithole-Matarise)