Treasury targets Pension Funds and Insurance Companies in $50mln Irrigation Bond

Treasury targets Pension Funds and Insurance Companies in $50mln Irrigation Bond

HARARE, Government will float a $50 million Irrigation Infrastructure Bond aimed at raising funds to support irrigation development and infrastructure under the Command Agriculture programme.

According to a term sheet seen by Insurance24, the Treasury bond has a coupon rate of 6% and 3-year maturity tenure.

The main targeted investors are Pension Funds, Insurance companies, Banks and other interested parties.

The Bond has since been granted prescribed asset status, Liquid Asset Status, Tradability, and Tax Exempt status. Agribank, CBZ Bank, and ZB Bank are the disbursing banks.

The term sheet alludes that minimum subscription amount will be at $5,000. As at December 31 2016, the pension fund industry had assets totalling about $2,3 billion and Finance Minister Patrick Chinamasa has constantly urged the industry to support infrastructure projects.

Government under a special irrigation rehabilitation and development programme seek achieve an additional 300 000 hectares of land being put under maize production to ensure national food security.

The programme is an extension of the 2016/17 Command Agriculture financed season which is expected to produce around 2,1 million tonnes of maize.

The programme will enable farmers to develop irrigation infrastructure at affordable costs.