ZB bond raises $10mln, sees ‘modest’ income growth in HY15

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    HARARE,– ZB Financial Holdings has raised million through an agro bond issued last year and sees 10 percent income growth in the first six months of the year, chief executive Ronald Mutandagayi has said.

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    ZB bond raises mln, sees ‘modest’ income growth in HY15

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    Mutandagayi said the group, which has been restructuring, will continue its pursuit for new investors to inject fresh capital and boost underwriting capacity. The efforts have, thus far, not yielded positive results, he revealed.

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    The group’s net interest income for the six months to June 2014 declined to ,8 million from ,5 million, while non interest income also registered a 26 percent drop to million despite a 14 percent growth in ATM card usage.

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    “We expect a modest income growth of 10 percent as the economy remains challenged. The bond has performed very well, with the full m being raised by 31 December 2014,” he said.

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    “The process (of raising capital) is continuing. Negotiations that were previously the subject of a cautionary statement did not yield a suitable transaction. Generally transactions of this nature take significant amount of time and more engagement is expected in 2015.”

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    ZB also plans to set up operations in Mozambique, drawn by growth in business activity in that country.

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    During the past year ZB Financial Holdings disposed of its stockbroking unit and asset management firm as the group seeks a new shareholder to shore up its flagship retail banking unit ahead of the 2020 recapitalisation deadline.

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