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Business Reporter
THE Infrastructure Development Bank of Zimbabwe (IDBZ) has floated $15 million infrastructure development bonds to finance the completion of a prepaid electricity meter project.

The power utility has since commencement of the project installed more than 500,000 meters in households and business premises across the country.

IDBZ yesterday said the bonds would initially be issued to the primary market by way of public offer and after allotment on December 8, 2014 they will be tradable on the secondary market.

“IDBZ hereby invites investors, including but not limited to pension and provident funds, insurance companies, life mutuals, commercial banks and other interested corporates or institutions as well as individuals from the local and international, to subscribe for the infrastructure development bonds amounting to $15 million,” said the bank.

“Proceeds of the bond issued will be used to finance the completion of the Zimbabwe Electricity Transmission and Distribution Company’s prepaid metering project.”

The tenure and principal payment is five years. Other features of the bond include the bonds being denominated in the principal amount of $10,000 and integral multiples of $1,000 thereof interest payment on the bonds would be paid semi-annually in arrears commencing six months after the allotment date. In addition, the bonds will be issued in definitive certificated registered form, serialised and both the guarantor and the issuer have not been rated for investment purposes.

The bonds will be issued in dematerialised form at the option of the applicant, in the Central Securities Depository (CSD) system, once the bonds module becomes operational.

On listing and tradability, IDBZ said an application would be made to list the bonds on the ZSE.