RBZ hunts for $1,5bn

GOVERNMENT yesterday began hunting for $1,5 billion to finance its operations, with the Reserve Bank of Zimbabwe (RBZ) approaching the market to invest in a two-year treasury bond.

In a statement, the RBZ said the bond, which attracts an 18% annual interest rate, would close this week.

The RBZ set a $1 million benchmark for investors.

“The Reserve Bank of Zimbabwe hereby invites investors, including but not limited to pension and provident funds, insurance companies, mutual funds and other interested institutions as well as individuals in Zimbabwe, to subscribe for the…bond.

“The purpose of this loan is to assist in financing of Government of Zimbabwe programmes.

“Interest is payable at the Reserve Bank of Zimbabwe half yearly…until maturity of the bond through the nominated custodian banks,” the central bank said.

The bond has been given a prescribed and liquid asset status, it is tradable and it is accepted as collateral.

The government and parastatals have recently been on the market to raised funds to finance several programmes this year.

Last month the Agricultural Marketing Authority (AMA) issued its $5 billion bill to fund grain purchases for the Grain Marketing Board (GMB).

Financial services giant, CBZ Holdings Limited, which handled the transaction said the offer of AMA bills would attract a 19% interest rate with a 270-day tenor.

CBZ also said only applications with a minimum of $1 million would be eligible to participate.

The banking group said the bills will have a prescribed and liquid asset status, in addition to tax exemption.

“The Agricultural Marketing Authority (AMA) intends to issue AMA bills of up to $5 000 000 000 to finance the purchase of maize for the 2021 buying season through the Grain Marketing Board,” CBZ said in the offer.-newsday.co.zw