Under the US$3.5b Global Compensation Deed (GCD)
In Sept 2022, Govt made an offer for the settlement of the GCD which was accepted by Former Farm Owners through a referendum. The agreed payment plan is in 2 parts as follows:
Part A
✳️Interim cash payment of 10% /US$350m (10% of US$3.5b), over 4yrs.
✳️Interim cash payments of US$35m per yr for 3yrs, btwn 2023-25,
✳️Balance of US$295m being paid in 2026 from sale proceeds of the FFO 12.5% Kuvimba shareholding &/or sale of any other Govt asset.
Part B
✳️Issuance of US$ TBs for 90% balance of US$3.15b, with 0% coupon in the first 4 yrs & 1% coupon starting from the 5th yr.
✳️TBs will be issued in 2023 & have maturities ranging from 6 to 20yrs.
✳️The coupon payments will be bi-annual in Mach & August in US Dollars.
The TBs will be issued with the following features:
✔️Prescribed asset status;
✔️Liquid asset status;
✔️Tradable;
✔️Payments emanating from the bonds will not be subject to taxation, or inheritance in Zim;
✔️Redeemable as & when additional resources become available to Govt.
