ZB Financial Holdings (ZBFH) is floating $5 million agro bills to finance the 2015/2016 agricultural season.
BY VICTORIA MTOMBA The company’s acting chief executive officer Shadowsight Chiganze told NewsDay that the paper has already been to pension funds and insurance companies.
“We now have regulatory approval from the Insurance Pensions Commission to raise funding for the 2016 farming season through agro bills for $5 million. This will be a one-year paper with a coupon of 8%. The paper is secured by a property portfolio which is independently managed by Imara Fiduciary Services,” Chiganze said.
The financial services company has in the past floated agro bills at different intervals that were fully subscribed. The $5 million and $10 million agro bills were fully subscribed. Chiganze said the $5 million tranche has since matured and obligations to investors were fully settled out of repayments by farmers.
“The economy has registered no significant improvements lately but the track record on ZBFH agro bill is expected to deliver the assurance on returns that the pension fund has always sought consequently. The success pattern on subscriptions is likely to be maintained,” he said.
The group posted a $4,1 million profit for the year ended June 2015 compared to a loss of $1,2 million in the same period last year, attributed to a raft of cost cutting measures.
This is the first time in two years that the company has recorded a profit. The company embarked on space rationalisation and is consolidating business to reduce rentals. ZB Financial Holdings saved $7 million during the year-ended June 2015 through cost-cutting measures. The group also closed non-performing units such as ZB Asset Management, ZB Securities, the small custodial business and is now out-sourcing cleaning services.
