CBZ Bank has announced plans to list the Zimbabwe Economic Recovery Bond on the Zimbabwe Stock Exchange (ZSE)after successfully issuing a three-year bond on the Cayman Islands Stock Exchange.
The $50 million bond arranged and guaranteed by the African Export-Import Bank was listed and admitted to trading on the Cayman Islands Stock Exchange in June last year.
A bond is described as a debt security in which the authorised assurer owes the holders a debt and, depending on the terms of the bond, is obliged to pay interest (the coupon) to use and/or to repay the principal at maturity.
Analysts said the listing of the first bond on the ZSE would broaden choices of assets on the market.
Currently the stock market has preference shares and debentures.
CBZ chief executive officer John Mangudya told an analysts briefing in Harare on Tuesday, the group planned to raise an additional $21 million from the Diaspora bond.
“The group is also aiming to have a facility of $7,5 million for housing loans,” Mangudya said.
Mangudya said CBZ was in good shape despite speculation it was broke.
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“For the past three months we have had a lot of rumours about the bank, something that is unhealthy and counterproductive,” he said.
CBZ Holdings recorded a 61% increase in earnings during the period under review.
The group’s basic earnings per share rose from 2,99 cents to 4,833 for the year ended December 2011.
Profit after tax jumped to $30,3 million from $18,8 million the previous year after total income for the group increased to $123 million up from $81,5 million the previous period.
“People can buy and sell the bond, but it will have a price to it which move according to market forces,” he said.
