HARARE - The Infrastructure Development Bank of Zimbabwe (IDBZ) is set to review its commercial banking operations to concentrate more on development projects, Finance minister Patrick Chinamasa has said.
The Treasury chief last week said IDBZ has so far received several consultancy jobs from government to plug an anticipated revenue loss.
“Going forward, the IDBZ will be more involved in development projects, and less in commercial banking . . . Yes, this is where most of their revenue is coming from so they have since received various projects to help generate revenue.
“They have the Tokwe-Mukorsi project, they are lead adviser on the Beitbridge-Chirundu highway project, and the Beitbridge Border Post project. All these projects are being undertaken in this year’s first half and we expect delivery,” Chinamasa said.
Last year, IDBZ received $20,3 million from government for completion of outstanding works at the Tokwe-Mukorsi Dam. The money was in addition $75 million Treasury Bills (TBs) availed by the government to clear outstanding arrears.
From the proceeds of the TBs raised earlier in 2016, the IDBZ then disbursed $18,4 million the dam’s contractor’s local bank account in full payment of all the arrears and approved payment certificates.
Meanwhile, the bank last year raised about $22 million from infrastructure bonds floated to the investing public to fund various projects under preparation.
The bonds — aimed at providing capital for the upgrading of Zimbabwe’s power generation plants and housing facilities —come after the bank issued its maiden $5 million housing bond in 2015 through private placement and an additional $15 million bond during this second half of 2016.
IDBZ also received the thumbs up from treasury to issue bonds worth over $100 million in the next five years.
IDBZ’s $5 million bond issued in 2015 was fully subscribed, and has a five-year tenor carrying a fixed coupon of 9,5 percent per annum.
Proceeds of this bond are financing development of two housing projects; New Marimba Park in Harare and Clipsham Views in Masvingo, were servicing is in progress.
The projects collectively deliver 1 042 serviced residential stands and the instrument has had one coupon payment settled in June with the bank presently developing 338 high to medium density residential stands under its New Marimba housing project.
The project is part of IDBZ’s contribution towards closing the country’s over 1,5 million housing backlog. IDBZ recently came up with a draft housing policy to its guide sector interventions aimed at easing housing shortage in the next two years.
The draft policy outlines plans to acquire land for housing development and funding mechanisms for the delivery of affordable units.