FNB Namibia has successfully issued its inaugural N$500 million sustainability note under its NSX-listed Domestic Medium-Term Note Programme, with Rand Merchant Bank (RMB) serving as Arranger, Dealer, Sustainability Advisor, and Coordinator.
The issuance marks a significant milestone in FNB Namibia’s sustainability strategy, following its previous green note issuance, and aims to finance impactful green and social projects.
The offering attracted strong investor interest, with 13 investors participating and the auction oversubscribed by 1.88 times, receiving bids worth N$940 million.
Ultimately, N$500 million in three-year notes was allocated to 11 investors at a rate of 3-month JIBAR + 78 basis points.
This represents a marked improvement from FNB Namibia’s senior green issuance at 3-month JIBAR + 145 basis points, reflecting heightened investor confidence in sustainable finance instruments.
Proceeds from the note will be directed towards eligible green and social assets, including renewable energy, financial inclusion, and social infrastructure.
These investments are aligned with Namibia’s national development agenda and FNB Namibia’s commitment to driving long-term economic resilience and sustainability.
“This issuance underscores FNB Namibia’s strategic commitment to embedding sustainability into our funding framework,” said FirstRand Namibia Group Treasurer, Selma Kapeng.
“The transaction aligns with global best practices, channelling proceeds towards impactful green and social initiatives that foster resilience and inclusive economic growth. Through this issuance, we reinforce our role as a catalyst for sustainable development while delivering value to investors and stakeholders alike.”
The sustainability note was structured under FirstRand’s new Sustainable Finance Framework (SFF), which was published in November 2024 and independently assessed by S&P.
The framework aligns with international best practices, further strengthening the credibility of the issuance.
RMB Namibia’s Transactor, Monét Basson, highlighted RMB’s role in structuring the transaction and its significance for the Namibian financial market.
“RMB’s expertise in structuring innovative sustainable finance solutions that align with international best practices has once again enabled FNB Namibia to benefit from the sustainable finance market in a credible way,” Basson said.
“The transaction showcases RMB’s value-add to Namibian clients and underscores our commitment to driving sustainable economic development while growing the local debt capital markets.”
