Namibia launches first eurobond

Nov 09, 2011

Namibia is launching its first ever eurobond, with the help of several banks.

Namibia is launching its first ever eurobond, with the help of several banks.

The ten-year, $500 million (€366 million) bond has the support of Barclays Capital and ABSA Capital, the Namibian reports.

Standard Bank is also involved in the scheme and it pointed out that although it was previously the more developed African economies that launched eurobonds, sub-saharan countries are now embracing international capital markets.

Chief Executive of ABSA Capital Stephen van Coller agreed, claiming the move will enable Namibia to diversify its sources of funding.

Furthermore, the bond will "[pave] the way for Namibian public and private sector issuers to have clear access to the international capital markets", he added.

ABSA is a joint ratings advisor and for the first time ever has secured the nation a second credit rating of Baa3 with a stable outlook from Moody's.

Speaking to Bloomberg about the launch of the bond last month, Chief Economist at investment bank Exotix Stuart Culverhouse said it looks "relatively attractive compared to African peers".ADNFCR-2976-ID-800790843-ADNFCR