IFC Issues First Namib Bond to Support Capital Market in Namibia | Independent Newspapers Limited
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IFC Issues First Namib Bond to Support Capital Market in Namibia

Posted: Mar 30, 2016 at 6:38 pm   /   by   /   comments (0)


The International Finance Corporation (IFC), a member of the World Bank Group, has launched the first bond by a non-resident issuer in the Namibian capital markets, raising 180 million Namibia dollars—equivalent to $12 million—for private sector development in the country.

The five-year bond is named “Namib” after the world’s oldest desert. Namib means “vast space” in the Nama language and gave rise to the name of the country. The bond is part of a medium term note programme registered with the Namibian Stock Exchange that allows IFC to issue up to 10 billion Namibia dollars, or approximately $650 million, in bonds in the domestic market.

IFC will invest the proceeds of the bond to support private sector development in Namibia. The bond yield is 9.812 percent per annum.

“Developing Namibia’s capital markets will be critical for long-term economic development, and especially for the expansion of the infrastructure and banking sectors,” said I. W. Shiimi, Bank of Namibia Governor.

“We hope that other international and domestic issuers will follow IFC and connect savings to Namibia’s private sector investment needs.”

The bond is issued under IFC’s Pan-African Domestic Medium Term Note Programme, which was launched in May 2012 to support capital market development in the region. Nine countries are part of the programme, including Rwanda and Zambia where IFC has already issued local currency bonds.