Namibia to raise $5bn on the South African market
The African nation is looking to diversify and industrialise its economy.Namibia will seek to raise about $5 billion on the South African market in loans and bonds over the next decade.
The African nation is looking to diversify and industrialise its economy, and plans to get funding in rands from countries including the US, China, India and Japan, according to President Hage Geingob.
"We’re looking at the South African bond market and some concessional loans," he told Bloomberg. "Rand bonds would be much better" than dollar-denominated Eurobonds, he added.
Indeed, since the start of 2015, the rand has been one of the worst-performing currencies among major emerging markets, weakening 17 per cent against the dollar.
This has caused the Namibian dollar to drop and made its debts in dollars more expensive to pay off.
Namibia has issued three rand bonds since 2012. In July, it sold 492 million rand (€32.3 million) of debt maturing in August 2023 and August 2026.