Standard Bank secures local N$700 million bond

The world of finance… The team behind Standard Bank’s local five-year Namibia Dollar Bond issuance are  (from left) Yolande Fourie (manager global markets), Bryan Mandy (chief financial officer) and Gabby van Eeden (manager investment banking).


Standard Bank yesterday confirmed to have successfully secured a five-year Namibia Dollar Bond issuance in local capital markets.

“The bank raised a total of N$700 million and the success of the issue continues to underscore Standard Bank’s commitment to the local market and the confidence the local market has in our Group,” said Standard Bank’s head of treasury, Neville Beckmann.

The latest bond issuance forms part of the bank’s general-term funding, which was raised and included N$500 million for 5 years to 18 investors, N$100 million for 3 years to two investors and another N$100 million for two years to one investor by Negotiable Certificate of Deposit

The latest 5-year bond issuance by Standard Bank comes just eight months after the successful partnership the bank had with the Namibian government on its second Eurobond issuance in international markets.

On October 29 last year, Standard Bank acted as a joint lead manager and bookrunner on the transaction. The US$750 million, 10-year transaction, issued in 144A / Reg S format, was tightly priced at a yield of 5.375 percent. The notes were rated Baa3 and BBB- by Moody’s and Fitch respectively.

According to the Bank of Namibia, the main factors that led to the recent strengthening of the country’s import cover included capital generated from the issuance of the second Eurobond last year, as well as valuation adjustments stemming from the devaluation of the Namibia Dollar against other major currencies.

During October last year Namibia issued the US$750 million ten-year sovereign bond in international capital markets, after entering this arena with a debut Eurobond in 2011. This last bond, which is listed on the Irish Stock Exchange, will mature in October 2025.

The central bank has since explained that the primary objective of the second bond issuance was to raise funding to finance the national budget and to increase foreign reserves.





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