THE Infrastructure Development Bank of Zimbabwe (IDBZ) plans to raise $250 milllion by 2018 from local and international investors for recapitalisation purposes.
BY VICTORIA MTOMBA
The bank seeks to become self-financing, leveraging its balance sheet to raise lines of credit, quasi capital and medium-to-long-term for investments in priority infrastructure projects.
Speaking at the banks’ analyst briefing yesterday, chief executive officer Thomas Sakala said: “Yes, we are being ambitious. We are the only infrastructure-focusing institution in the country. So we need to raise our level of ambition and make meaningful contribution, there are challenges, but we will be looking at partners locally, regionally and internationally.”
Sakala said the country required $36 billion for infrastructure, according to the World Bank.
He said the bank had a mandate to provide infrastructure and in the past 18 to 24 months, they worked on Marimba, Clipsharm and Waneka housing projects.
Sakala said IDBZ would work towards providing infrastructure and sanitise homes as well as looking for partners who can provide mortgages for the superstructure, adding the $50m energy bond had been fully subscribed for power projects.
He said the bank floated a rights issue of $3m and should be completed by year end.
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IDBZ finance director (projects) Cassius Gambinga said the bank was expecting to close the year at a break-even point and to remain profitable in 2017 going forward.
For the half year ended June 2016, the bank posted a profit of $170 000 compared to a $1,84m loss that was posted in the same period last year.
This has been attributed to stable long-term loans funded by bonds. Total income was $2,96m from $3,94m in 2015 due to Public Sector Investment Programme funding.
Gambinga also attributed the low incomes to delays in housing implementation projects.
He said the company has a major exposure in the energy sector from Zimbabwe Power Company and Zimbabwe Electricity Transmission and Distribution Company of $44m.
During the half year, loan impairments for the group went down to $520 000 from $620 000 due to haircuts on restructured exposures and general provisions.
The bank’s expenses were down by 50% to $2,94m from $5,85m due to cost management measures.