The Ministry of Finance and Public Enterprises says the government is prepared to meet its N$13 billion (US$750 million) maturing Eurobond obligation on 29 October 2025.
According to the Minister of Finance and Public Enterprises, Ipumbu Shiimi, the government has employed a savings strategy that involves setting aside funds specifically designated to cover the upcoming maturity, with N$9 billion (US$500 million) from the reserves being used to pay off some of the bond.
“What we have been doing is putting some money aside, and we will continue to do so until the date of repayment. We will pay off some of the bond, close to US$500 million, from these savings that we are putting aside,” he said.
He further explained that for the remaining balance of approximately N$4 billion, the government is exploring domestic borrowing options.
This could involve issuing domestic bonds, potentially attracting local pension funds seeking investment opportunities.
“There will be a remainder of US$250 million that’s the one we’re trying to see should we convert it into a domestic bond, for instance, so, maybe our pension funds here are looking for some domestic instruments so we can borrow from them and repay the bond,” Shiimi says.
It is reported that paying off a significant portion of the Eurobond will bring the debt-to-GDP ratio down to around 56%, which is better than the international standard of 60%.
This will also lead to lower interest payments and reduce the vulnerability of the total debt and interest payments to changes in exchange rates.
