Harare, (New Ziana) – CBZ Bank on Monday issued two 270-day bonds to raise funding for maize and soyabean production in the current farming season.
These were for US$50 million and ZWL$500 million (about US$29.6 million)
under the bank’s commercial contract farming programme.
Part of the funds would be used to import agricultural inputs not
“CBZ Bank intends to issue a series of 270-day bond instruments to finance the procurement of farming inputs for maize and soyabean farming that are not available on the local market for the 2019/20 farming season under the Commercial Contract Faring Programme being spearheaded through CBZ Agro Yield Pvt Ltd,” the bank said.
The foreign currency denominated bond comes with a government guarantee, Reserve Bank Exchange Control approval to convert Zimbabwean dollar proceeds under the programme to USD and a sinking fund account into which USD will be ring-faced for repayments.
Investors will earn an interest of 9.5 percent per annum.
Minimum applications will be for US$50 000.
For the ZWL$500 million bond, CBZ Bank said subscriptions will be for
a minimum of $1 million.
Investors will get an interest of between 15 percent and 18 percent per annum on their investment.
The bond comes with special features, including prescribed asset status, liquid asset status, tax exemption status and a government guarantee.
Subscriptions for the two bonds open on January 6 and close on January 10.
The attempt to mobilise funds for the 2019/20 seasons comes in the face of a catastrophic drought that has hit the country.