Zimbabwe has scrapped a plan to list a $200 million dollar bond on its stock exchange in the resort city of Victoria Falls.
In the latest debt report presented to lawmakers on Nov. 30, Zimbabwe’s Treasury said the issuance of the bonds on the Victoria Falls stock exchange was not successful due to the “limited appetite” by potential international subscribers and the “high cost” of the Afreximbank guarantee fee, which was 30% of the face value.
“Going forward, government will explore cheaper options of issuing a dollar bond which will be listed on the VFEX, to enhance its tradability,” the Treasury said in the report.
Under the listing plans, Finance Minister Mthuli Ncube had proposed $30 million tranches in about six issuances. The proceeds from the bond listing would have been used to help settle an outstanding $3.5 billion debt due to White farmers evicted from farms more than two decades ago.
The government has set aside only $55 million in this year’s budget as compensation to farmers for improvements made on the land.
Source:norvanreports