Zimbabwe government will this year float an infrastructure development bond with a view to mobilising resources for various capital projects.
The Minister of Finance and Economic Development Patrick Chinamasa has already sounded insurance and pension houses to prepare to subscribe to the infrastructure development bond.
“I have given notice to insurance and pension companies that I shall float an infrastructure bond to be subscribed by them. This is in the mobilisation of resources to put our infrastructure which is critical to our economic take off,” said Minister Chinamasa recently.
He said domestic resource mobilisation is not an end to financing development needs but is a must born out of necessity.
“As we try to ease pressure on the budget and to meet financing requirements for our infrastructure, Treasury will be issuing longer term instruments such as bonds,” said Minister Chinamasa.
“In order to improve transparency and confidence in the trading of Government securities, as well as ensure that the return on the securities reflects market conditions, issuance of securities will also be in the manner of the auction system,” he said.
The Government debt instruments will be tradable on the Zimbabwe Stock Exchange just like other stocks.
The ZSE has said that it is readying for trade in such instruments.
Overall requirements for infrastructural development for 2016 amount to $2,7 billion.
Source: The Herald