The government will issue bonds worth US$100m to be listed on the Victoria Falls Stock Exchange (VFEX) before the end of this year as it raises additional resources to finance infrastructure projects.
Finance and Economic Development Minister, Mthuli Ncube said the approval process was going into the final stage.
“Great progress has been made pertaining to the launch of the US$100m bond at VFEX. The guarantor for the fund has approved to support the structure so as to improve the credit standing of the fund and really lower the risk on the fund. Investors should be happy the approval process is going to its final phase so expect that certainly by year-end, we would be able to have raised the US$100m. So, it’s underway,” Ncube said.
“This is only just the beginning and going forward the government will be launching additional bonds. We also expect other public sector entities to do the same on the back of a government guarantee.”
In April this year Ncube held a meeting in Washington DC with international investors to see if they were keen to participate in the US$100m bond.
In his 2022 National Budget, Ncube said the bonds would be issued to cut borrowing costs and develop capital markets, with the specific goal of creating the Victoria Falls Offshore Financial Services Centre to attract more foreign investment.