The Bank of Namibia has confirmed that it has successfully mobilised the funds required to redeem the country’s $750 million Eurobond due on October 29 — the largest single debt maturity in Namibia’s history.
The Eurobond, issued in 2015, was designed to support national development projects, strengthen the balance of payments, and finance the government’s budget. According to the central bank, the total redemption amount stands at 13.5 billion Namibian dollars ($779 million), based on an exchange rate of 17.5 Namibia dollars to the U.S. dollar.
Speaking during a Monetary Policy Committee briefing on Wednesday, Central Bank Governor Johannes !Gawaxab announced that the funds had been fully mobilised in line with Namibia’s sovereign debt management strategy.
“We have mobilised the full amount, and that mobilisation is within the sovereign debt management strategy of the bank,” !Gawaxab said. “If we issue paper, it’s a testament to our commitment to honour our obligations. The economic fundamentals of the country remain sound.”
However, the governor cautioned that Namibia’s foreign reserves are expected to decline by about 25.11% — from 63 billion Namibian dollars in 2024 to 47 billion by the end of 2025 — following the Eurobond repayment.
Despite this anticipated reduction, the Bank of Namibia assured that the country’s reserves remain strong and sufficient to meet external obligations. The bank also revealed that it is pursuing proactive measures to safeguard reserves, including exploring currency swap arrangements with other financial institutions to maintain liquidity and financial stability.
Governor !Gawaxab reaffirmed the central bank’s commitment to responsible debt management and preserving investor confidence, stressing that Namibia remains dedicated to maintaining its creditworthiness and fiscal discipline.
Source:Africa Publicity
