By NANCY MWAPE
INVESTRUST Bank Plc has successfully redeemed part of the first tranche of the K100 billion medium term note(bond) issued in 2007 to facilitate expansion of branches and increase its capital base.

A bond is a debt instrument issued by the government, local governments and companies to raise money from the public to meet their financial requirements.
And Government has urged the business community in Zambia to use options available on the capital market for long-term funding.
Officiating at the Investrust bond redemption ceremony in Lusaka on Tuesday Commerce, Trade and Industry Minister Felix Mutati commended the bank for securing the bond and redeeming it on the due date.
Bond redemption is the date on which the bond matures and is cashed in.
On the redemption date, the investor is paid the principal of the bond plus interest.
Mr Mutati said there is need for the business community to shift from the traditional way of raising capital and look at the Lusaka Stock Exchange (LuSE).
“Instead of mourning for capital investments, let’s look at the options available on LuSE. As Government we will continue to ensure monetary policy assist to reduce inflation and tackle fiscal policy by reducing Government borrowing,” he said.
He said Government is faced with the challenge of growing the economy which can only be done by mopping up savings.
“The danger faced by the expansion of savings is the minimum balance required to be kept in banks,” he said.
Mr Mutati cited the high cost of money and concentration of banks in urban areas as other factors affecting economic growth.
He said 50 percent of Zambia’s growth will be derived from agriculture and tourism.
Earlier, Investrust Bank managing director Friday Ndhlovu said the bank formed in 1996 as a Merchant Bank, has grown from internal resources with assets standing at over K500 billion.
Mr Ndhlovu said the issuance of the corporate bond was necessitated to fund demand for credit, extend maturity of loan profile, support branch expansion and product development such as visa cards.
The medium bond was issued in two tranches, the first was K30 billion and second was K70 billion.
He said the bank has so far opened five new branches, increased capital base and trained staff in all critical areas such as credit, treasury and operations.
“We are still ambitious to have a presence in every corner of this country through new branch openings and other delivery channels and we have no doubt that this will continually call for more financing,” he said.
Mr Ndhlovu said competition is getting stiffer and the modern bank customer is getting more sophisticated, which demands for more investments in research and development to ensure continued innovations in product development.
The subscribers for the K100 billion bond include African Life Financial Services, Professional Insurance Corporation, Professional Life Assurance, Cavmont Holdings Limited, Mukuba Pension and ZCCM-Investment Holdings.
Others are Workers Compensation Fund Control Board, National Pensions Scheme Authority and individuals Conrad and Felistus Mbewe.