Published: 30 June 2014

Fidelity Life Assurance of Zimbabwe Limited is expecting its $5 million bond issue to be fully subscribed by the end of this month as many investors have expressed interest in the instrument.  

As part of the company's efforts to mobilise the money, FLAZ set up its wholly-owned special purpose vehicle; Athena Estates (Private) Limited to mobilise funding and service the proposed Fidelity South view Park Residential Development in Harare.

Fidelity life Assurance managing director Mr Simon Chapereka said there was much interest shown in the market.

"We believe the prescribed asset status of the bond together with the rate of return, the comparatives in the market and the time in terms of the three years is very competitive," said Mr Chapereka

"We expect that the bond will be oversubscribed when we close it at the end of this month."

The $5 million required will be used for the installation of the 11km bulk water pipe at a budget of $2,675 million and elevated water tanks with a capacity of 15 million litres at budget $2,325 million which is a City of Harare pre-condition.

The group has anchored its growth on the property development project; confident it will deliver a $30 million windfall if all the 5 974 stands are sold considering that liquidity challenges continue to affect the uptake of the traditional insurance column.

"The company has continued to trade profitably in 2014 and the group is undertaking various initiatives to unlock value and ensure company survival," said Mr Chapereka.
- The Herald

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