Fin24

Zim to issue $30m bond for power utility

2012-10-24 09:27

Harare - Zimbabwe’s state-owned infrastructure bank said on Wednesday it will float a $30m bond to raise funds for the national power utility, as the country grapples with electricity shortages that have crippled industry.

Infrastructure Development Bank of Zimbabwe (IDBZ) said in a statement it would float the three-year bond with a 10% fixed rate on October 29.

“It was resolved that the focus of the bond issue be on the power sector, which is a key enabler in the economy,” IDBZ said.

Zimbabwe’s infrastructure - including roads, railways, dams and power plants - has been starved of finance due to a decade of economic collapse, which eased somewhat with the formation of a power-sharing government in 2009.

Earlier this year, Finance Minister Tendai Biti said the country would float $100m bonds to rehabilitate its aged infrastructure.