Treasury and the Insurance and Pensions Commission have given ZB Bank a thumbs-up to raise $30 million through the issuance of agro bills and commit the funds to the 2010/2011 agricultural season, now under way.
The debt instruments have a tenor of 360 days and the coupon rate is negotiable on a private placement basis.
The floatation, one of Zimbabwe’s first under the multiple currency dispensation, targets pension and provident funds, insurance companies, life mutuals, banking institutions, public and private institutions and cash-rich individuals.
The funds would be used to finance summer cropping, livestock production, poultry and piggery.
The bank has taken a keen interest in agriculture financing since “dollarisation” of the economy last year.
In June this year, ZB Capital raised $7 million to fund the 2010/2011 agricultural season.
The purse, disbursed at an interest rate of 10% and for tenor of 360 days, was committed towards tobacco, wheat, seed maize and cotton under a contract farming arrangement.