How Was The Division Started?
CBZ Investment Banking was established in 2002 and originated as Corporate Finance Unit within CBZ Bank. Over the years, the scope of the divisions activities has grown as the demand for unique financial solutions for customers grew.
Why Was It Started?
CBZ Investment Banking was established in response to the clients’ needs for tailor-made financing solutions that went beyond the normal on-balance sheet bank lending scope, with a view to provide clients with corporate finance solutions and tailor made of balance sheet funding. The divisions core competence is its ability to critically examine a company’s operations vis-à-vis local and the international environment and trends, and prescribe ideal solutions to the client’s needs.
What Exactly Are Its Functions?
CBZ Investment Banking is a specialist segment of financial services that helps corporate clients raise capital and provides financial advisory services. In addition, as part of capital mobilisation for clients, trade finance solutions are a pivotal function of CBZ Investment Banking through providing structured finance products and securing offshore funding from international banks and Development Finance Institutions.
Service offerings related to capital raising generally encompass of-balance sheet funding solutions through appropriate debt or equity financing instruments.
Capital Raising Solutions include the following:
- Equity financing through stock exchange related transactions such as Initial Public Offers (IPOs) and Rights Issues.
- Debt financing includes issuance of various debt instruments by private placement or public issues such as bonds, bills, and debentures. It also encompasses specialised infrastructure funding through Project Finance for small, medium and large scale Turnkey Projects.
Advisory Services entails offering financial advice on the following:
- Mergers and Acquisitions;
- Balance Sheet Restructuring;
- Debt Restructuring;
- Due Diligence Exercises;
- Company Valuations; and
- Management Buyouts.
Structured Trade Finance
Structured Trade Finance involves the offering of financial solutions to companies with unique financing needs. These financing needs usually cannot be met by conventional financial products such as ordinary loans and overdrafts, but involve transferring risk from one party to another more amenable to manage the risk as a component of the solution provision to the client.
Structured Trade Finance solutions include the following:
Debt Issues – bills or bonds
Debt issues consist of issuance of bills and bonds to raise capital for an institution. Bills are short term debt instruments with a tenor of up to a year, whilst bonds have a medium to long term tenor. This capital raising function is usually done on behalf of public entities and large corporate customers.
Structured Loans and Guarantees
The financing and guaranteeing of projects in line with the anticipated cash flows.
Receivables financing refers to financing of goods and services on the basis of ring-fencing the related payment thereof. CBZ Investment Banking finances these transactions on the strength of the financial capacity of the Buyer. CBZ Investment Banking can facilitate these trade transactions by way of order finance, invoice discounting or debt factoring facilities.
CBZ Investment Banking handles indirect ofshore lines of credit from regional and international financiers for on-lending to the Bank’s clients (sub-borrowers). The lines of credit are essential for raising trade finance, medium term and long term financing for the Bank and the Group, which funds are channeled to specific clients.
CBZ Investment Banking also arranges direct lines of credit for large corporates and/or projects.
Who Can Use CBZ Investment Banking Services And How?
Investment Banking services can be accessed by any large public or private corporate, parastatal bodies and government related entities.
Since dollarisation transactions valued at over USD400 million have been executed through Investment Banking.
Deputy Divisional Director
Head Research & Sales
Structured Trade Finance
Contact Richard, Nyasha, Sarah or John on:
Tel: (04) 748050, 780880-4, 798915, 756233-5
Fax: (04) 758077