Gondwana Holdings Limited (Gondwana) received bids valued at N$475 million from the issuance and listing of new Senior Unsecured Floating Rate Notes (Notes) under its Medium Term Note Programme (MTNP) approved by the Namibian Stock Exchange (NSX).
According to the hospitality group, the received total bids resulted in the Note issuance being oversubscribed 1.9 times, from its initial target of N$250 million from an auction which closed on 8 May 2023.
Proceeds from the Notes with maturity periods staggered between three and five years, will be used to refinance the company’s existing bank financing and forms part of Gondwana’s ongoing strategy to improve its financial flexibility.
The issued Notes will be listed on the NSX and carry a floating interest rate.
“We are thrilled with the success of our auction and grateful for the overwhelming response from investors. We are humbled by the confidence shown in us.” said Gondwana’s CEO Gys Joubert.
“The MTNP and listed Notes issued is an important step in our strategy and a strategic enabler to optimize our capital structure, and to reduce financing costs. With the restructuring of our balance sheet Gondwana will be positioned to generate growth from future opportunities, while balancing stakeholder expectations.”
Gondwana is a hospitality group which specialises in providing exceptional accommodation, unique experiences, and sustainable tourism initiatives and has a wide portfolio including accommodation, tour consulting, car rental, and also offers online travel agency services.