BUSINESS REPORTER
CBZ Bank plans to float ZWL$500m worth of bonds to finance the buying of maize and soya beans inputs for the 2019/20 farming season, the financial services provider said Monday.
The bank will raise the money to buy the inputs under the bank’s Commercial Contract Farming Programme being spearheaded through CBZ Agro Yield (Pvt) Limited.
The bonds are guaranteed by the Government of Zimbabwe and will be issued at an interest rate of between 15% and 18% per annum. The bonds also carry a tenure of 270 days from the first day of allotment. Special features for the bonds are prescribed asset status, liquid asset status and tax exemption status.
The bank Monday invited corporates and individuals to subscribe for the bonds with the minimum amount of investment set at ZWL$1m.
“CBZ Bank Limited intends to issue a series of 270 day bond instruments to finance the procurement of farming inputs for maize and soya bean farming for the 2019/20 farming season under the Commercial Contract Farming Program being spearheaded through CBZ Agro Yield (Pvt) Limited. CBZ Bank Limited hereby invites corporate and individual investors to subscribe to the CBZ Bank Series 2-ZWL$500 000 000 bond.”
