New tender unattractive

THE Infrastructure Development Bank of Zimbabwe (IDBZ) and City of Harare have floated an Z$80 billion tender through a special purpose vehicle, Waneka Investments, in the form of 365-day Asset Backed Bonds, to finance the second phase of the Graniteside Park Housing Project.

However, analysts have expressed reservations on the success of the bond, given that the Reserve Bank was also recently on the market with a three-year Insurance Bond, implying that the prescribed asset status would not be much of an attraction.

Support for money/bond market investments is currently subdued due to continued negative interest rates, which will continue to promote consumption and “speculative” activity.

Hence many investors would rather invest in stocks and get exposure to the property sector through listed property companies.

Post published in: Economy

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