Namibia’s Development Bank (DBN) has issued a new 7-year bond via a private placement with a face value of 130 million Namibia dollars(about 8.4 mln USD), the financier announced on Tuesday in a statement.
The DBN29 bond was issued on March 4, 2022, and it matures on March 5, 2029.
DBN29 was issued with a spread of 240 basis points above the 3-month JIBAR, the Johannesburg Interbank Average Rate, meaning it will pay interest quarterly at 2.4 percent above the average rate at which banks buy and sell money. As the 3-month JIBAR is set quarterly, DBN29 is a floating rate bond and the interest rate will change every three months.
According to DBN, the bond is the bank’s first sovereign guaranteed bond, so its repayment is guaranteed by the government.
“As bonds come with high-interest costs for use of investor funds, DBN bonds are used to raise funds to finance infrastructure and large enterprises,” the bank said.
In total, DBN has issued five bonds, including DBN29, since it listed its medium-term note programme on the Namibian Stock Exchange in 2017.
DBN is rated by Fitch Ratings and currently the bank has a foreign currency long-term issuer default rating (IDR) of BB/Outlook Negative and a national long-term IDR of AAA(zaf) /Outlook Stable. Enditem
