idbz logo 06-09-10.jpgThe Infrastructural Development Bank of Zimbabwe (IDBZ) has finalised a deal with the China Development Bank which will see the injection of fresh capital in the energy, transport and infrastructure development sectors.

 

The arrangement will see the IDBZ getting fresh capital and equity from the Chinese Development Bank through its investment arm, China-Africa Development Fund.

 

IDBZ Chief Executive Officer, Mr Charles Chikaura said discussions have been concluded and the IDBZ can expect long term capital in the form of lines of credit that are critical in capacity building projects.

 

“China Development Bank will extend long term capital in the form of lines of credit which will be used in the energy, transport and infrastructure sectors and will also be involved in capacity building in terms of projects development. We will be responsible for co-financing with them as you are aware that they will be injecting equity,” said Mr Chikaura.

 

China Development Bank has been pursuing negotiations to acquire significant shareholding in IDBZ although figures on the deal are yet to be made public.

 

The deal between the two banks will enhance the IDBZ’s capacity to finance infrastructure projects in the country as China Development Bank together with its subsidiaries offers credit facilities that include medium and long term loans.