Namibia: Development Bank Raises N$291 Million Through Bond


 | Source:  Namibia Economist; All Africa

The Development Bank of Namibia (DBN) issued the first notes under its N$2.5 billion Medium-Term Note Programme last week and raised N$291 million.

The 3-year bond (series "DBN20") was issued through an oversubscribed auction process that was held on 31 August 2017. The bond pays a floating rate coupon quarterly, linked to the JIBAR rate and will mature on 4 September 2020.

The issue marks the first time that the Bank has formally approached local capital markets to raise funding, and depending on future cash flow requirements, the Bank will be a regular issuer in the Namibian capital markets going forward.

The N$2.5 billion Medium Term Note Programme aims to provide an alternative source of funding which forms part of the board approved funding strategy, in line with the bank's targeted gearing ratio.

"The programme is part of the Bank' strategy to diversify its source of funding and raise money on the market for on-lending to financially viable, environmental, and socially acceptable projects with developmental impact in line with the Bank's business plan. The Bank had planned to raise between N$200 million and N$ 300 million on its debut bond issue, and was well supported and oversubscribed by 26 staggered bids from 13 different investors both in Namibia and South Africa," said Jerome Mutumba, senior communications manager. Read more on All Africa.

Source: All Africa