IDBZ sitting on $36m housing portfolio

IDBZ sitting on $36m housing portfolio
Published: 15 June 2018
AFTER servicing and delivering 1 061 housing stands, the Infrastructure Development Bank of Zimbabwe (IDBZ) is presently servicing 4 227 housing stands valued at $36 million, the State-owned group said.

The group - which recorded a profit of $626 420 for the year to December 31, 2017 from a loss of $1,5 million on prior year driven by strong performance from the housing projects portfolio - recorded a 281 percent growth in its housing projects portfolio in 2017.

IDBZ chairman Willard Manungo said the group had managed to develop projects worth $85,7 million after raising $26,6 million in project funding.

Projects worth $85,7 million approved by the board last year for funding were: Kariba Housing project at a cost of $14,8 million, Empumalanga West Housing and Waste Water Treatment Plant Rehabilitation Project - $5,8 million, Sumben Housing project - $15,4 million.

The group also undertook a university students and staff accommodation programme valued at $34 million and the Victoria Falls municipality water sanitation and health project worth $15,7 million.

During the period under preview the bank successfully completed the implementation of Clipsham View Housing Project, Masvingo at $6,7 million and New Marimba Housing Project in Harare worth $2,9 million.

Chief executive Thomas Sakala said the bank was now benefiting from refocusing to core mandate with revenue and asset portfolio predominately backed by medium to long term infrastructure business.

"Fair value gains of $1,8 million were recorded on investment property following renovation which improved occupancy rates and income from leased properties under tenancy," he said.

Total assets grew 18 percent to $189 million, spurred by growth in the bank's housing projects portfolio. Cash and bank balances closed at $41 million, a 79 percent growth from prior year, thus reflecting continued sound liquidity management while supporting core mandate delivery.

"The loan portfolio continued to perform well, particularly the energy portfolio funded from infrastructure bonds and consequently, the non-performing loan (NPL) ratio went down from nine percent to seven percent. Resolution of the non-performing exposure to Meikle's Limited will bring the NPL ratio below the Reserve Bank of Zimbabwe threshold of five percent and concerted efforts made towards accomplished this target," he said.

Going forward, Manungo said the bank expects to benefit from government policies that are geared towards promoting investor friendly policies.

"These measures include prudent fiscal policy re-engagement with the international community, improving the ease of doing business and pursuance of political stability," he said.
- fingaz
Tags: IDBZ,


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