Zimbabwe Woos Investors with $200M U.S Bond Sale

Zimbabwe is seeking to raise $200 million in a debut, domestic US dollar bond sale on its stock exchange in Victoria Falls that trades exclusively in foreign currency, according to Finance Minister Mthuli Ncube.

Zimbabwe is targeting a yield of between 6% to 9% on the bonds, according to the finance minister on Bloomberg Television. He further explained that yield-hungry investors in frontier markets are interested in the offering.

Earlier this month, Bloomberg reported that the bond sale could be for $100 million. In August, Ncube said a debt offering could help meet the cost of a $3.5 billion compensation bill the country is facing after it reached an agreement with White farmers evicted from their farmlands two decades ago.

Your Friends Also Read:  Kenya seeks $1 billion World Bank loan

The “Zimbabwe Global Investor Roadshow” has seen Ncube travel to South Africa and Dubai to court foreign investment. In New York, Ncube will also meet with officials from the International Monetary Fund and the World Bank, ahead of an IMF visit to Zimbabwe that’s expected next month.

The government has been building up a track record of repaying its foreign debt by making token payments to creditors including the Paris Club, Ncube said. The country defaulted on payments to the World Bank, the IMF and other multilateral lenders two decades ago.

The IMF is expected to make a decision on a new staff-monitored program for Zimbabwe later this year, according to Ncube. The IMF in February 2020 abruptly ended the program saying it had “gone off track.”

Your Friends Also Read:  Nigerians offered free flights back home from South Africa

The Victoria Falls Stock Exchange also known as “VFEX” was launched a year ago and last week signed a pact with the United Arab Emirates to possibly establish a gold exchange. Ncube sees the exchange helping “deal with gold smuggling and arbitrage,” as well as advertising Zimbabwe’s mineral resources.

A cryptocurrency listing on the VFEX in future is also a possibility.

Leave your vote


All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express written permission from News Central TV.
Your Friends Also Read:  Burundi to Reopen Melchior Ndadaye Airport

Contact: digital@newscentral.ng

Total
0
Shares
Previous Article

Virtual Exhibition Breathes Life into Lesotho’s Musical Tradition and Clay Art

Next Article

Nigeria's Opposition Stalwart Fani-Kayode Defects to Ruling APC

Related Posts

Log In

Forgot password?

Forgot password?

Enter your account data and we will send you a link to reset your password.

Your password reset link appears to be invalid or expired.

Log in

Privacy Policy

Add to Collection

No Collections

Here you'll find all collections you've created before.