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Oliver Kazunga Acting Business Editor
AFRASIA Zimbabwe Holdings Limited (AZHL) says it is well on course to raise $15 million through borrowings to increase its liquidity base. The company is a subsidiary of Mauritius-based AfrAsia Bank Limited (ABL).

A local finance group, IMARA Capital Finance, has been entrusted to jointly market a Medium Term Secured Note, which is expected to generate incremental $15 million liquidity.

A secured note is a form of a loan backed by the borrower’s assets, which the debtor can forfeit upon default.

In a joint statement issued on Friday AZHL chief executive officer Lynn Mukonoweshuro and ABL chief executive James Benoit said: “This note has been marketed to local, regional and international investors. The Note, which will be drawn in tranches, is expected to generate incremental $15 milion liquidity. The first tranche will be drawn towards the end of January 2015.”

Part of the joint statement revealed that AZHL micro finance unit MicroKing Finance had attracted regional and international interest.

“During the course of December and early January shortlisted investors will visit Harare to conduct their due diligence with a view to submitting final offers in mid-January. The proceeds of the partial disposal will be reinvested in the business.

“These processes take time to complete but are well advanced and we thank our valued customers and other stakeholders for their patience.”

ABL has raised nearly $15 million of fresh capital from the National Bank of Canada this month.

“In addition, ABL recently completed a $46 million Class A Tier 1 Preference Share Issue, which will be listed on the Stock Exchange of Mauritius soon,” said the statement.

“ABL is committed to raising capital for all its group operations to allow them to compete strongly in their respective markets, including in Zimbabwe.”

Of late, AZHL depositors have been failing to withdraw their money as the bank was hit by liquidity crisis.

The bank has also announced the addition of the National Bank of Canada (NBC) to its shareholding structures.

NBC will acquire a 9,5 percent stake in AfrAsia and aims to further increase its shareholding in the near future.