Chamwe Kaira
The Namibian government will make an interest payment of N$17 million on 1 August 2025 on bond NAM04, listed under ISIN ZAG000138470.
The bond carries a coupon rate of 10.51%, according to a notice issued on the Johannesburg Stock Exchange (JSE).
“Since the scheduled payment date falls on a weekend or public holiday, the following business day rule will apply if necessary. FirstRand Bank Limited is the debt sponsor for this issuance,” the announcement said.
On 3 February 2025, the government made a similar N$17 million payment on the same bond under the same terms.
The government has several bonds listed on the JSE. In the 2025/26 national budget, it said the financial year is expected to be eventful in terms of financing activities.
A key event is the redemption of the US$750 million (approximately N$13.56 billion) eurobond, due on 29 October 2025.
To meet this obligation, the government has accumulated US$463 million (about N$8.6 billion) in the sinking fund.
It plans to add another N$3 billion (about US$162 million) to the fund during the 2025/26 financial year.
This will leave a shortfall of N$2.3 billion (about US$125 million), which the government intends to refinance through the domestic market.
The government said it considers the domestic market to be the most optimal source of funding given current interest rate levels, available liquidity, and investor appetite for government securities.
In addition to the eurobond redemption, the government is also repaying the International Monetary Fund’s Rapid Financial Instrument loan.
It will repay N$2.3 billion during the 2025/26 financial year and the remaining N$1.2 billion in 2026/27.
These payments are in addition to regular redemptions of various domestic bonds.
The government said this approach will help stabilise the country’s debt stock in the medium term. Public debt is projected to decline from 66% of GDP in 2024/25 to 62% in 2025/26.
Once the eurobond and IMF repayments are completed, over 80% of Namibia’s debt stock will be denominated in the local currency.
The government said this shift will reduce exposure to exchange rate risks and support the domestic capital market by creating more opportunities to deploy local capital within the country.
