Bank Windhoek has raised N$250.5 million through the issuance of Namibia’s first Sustainability-Linked Bond (SLB), a financial instrument tied to defined sustainability performance targets.
“As a truly Namibian bank, we recognise the importance of financing traditional growth sectors and prioritising emerging, high-impact niches within the economy. One such area is Sustainable Finance, which is not only about risk and return but also prioritises specific impact areas linked to national development goals and sustainability objectives,” Chief Treasurer Claire Hobbs said.
“The Sustainability-Linked Bond is a significant evolution in our approach: unlike use-of-proceeds bonds, this instrument directly commits the Bank to achieving defined sustainability performance targets.”
The three-year bond auction, held on 19 August, attracted bids worth N$525.5 million, of which N$250.5 million was allocated at a rate of three-month JIBAR + 80 basis points. “The auction was 1.75 times oversubscribed speaking to investor interest for this type of thematic issuance, that is a first of its kind for the Namibian market,” Hobbs said.
As part of its commitment, Bank Windhoek has pledged to deploy N$300 million in sustainable finance over the next two years.
“The focus is to enable and empower small-scale projects, speaking to the ambition of this commitment, recognising that collective impact built on many small contributions can significantly drive resilience and inclusive development,” Hobbs said.
On the design of the bond, she explained: “In designing this instrument, being a relationship bank, we engaged with various stakeholders, drawing from their insights and global best practices we could learn from. The resulting bond structure reflects our first attempt at this type of instrument, the unique market contexts and institutional capacity, while also challenging us to raise the bar in sustainable finance.”
“Through this bond, Bank Windhoek aims to create meaningful impact, enable greater client participation in sustainability efforts as it works to achieve its commitment, and continue to play a catalytic role within the Namibian economy.”
