The Bank of Namibia’s latest domestic bond auction drew bids worth more than N$3 billion, exceeding the initial offer of N$2 billion, Simonis Storm Securities said.
Junior Equity Analyst Kara van den Heever said the GC35 was the most in demand. “Of this, N$312 million was allocated compared to an initial offer of N$160 million.
The GC40 also attracted significant interest of N$214 million; however, no allocation was made despite an initial offer of N$140 million,” she said.
Allocations across the GC board came in higher than planned.
“N$1.5 billion was initially on offer, yet allocations reached N$1.7 billion, resulting in an overallocation. Average yields showed an upward adjustment, with HYA and WAY climbing 10.81 and 10.72 basis points respectively,” van den Heever said.
On the inflation-linked side, demand was also strong.
“Total bids amounted to N$729 million against an initial offer of N$500 million. The GI27 recorded the lowest interest at N$18.9 million compared to an initial offer of N$95 million, leading to no allocation. The GI41 remained the most sought-after instrument, attracting N$207 million against an initial offer of N$70 million, and was modestly overallocated at N$75.1 million,” she said.
“Total allocations came to N$325.4 million against an offer of N$500 million. Yields strengthened slightly, with HYA and WAY gaining single-digit basis points,” van den Heever added.
She said the issuance is part of the central bank’s plan to raise an extra N$2 billion locally after delays in external funding.
Namibia remains on track to redeem its US$750 million Eurobond on 29 October 2025, supported by a sinking fund of more than US$500 million.
“The next bond auction is scheduled for Wednesday, 3 September,” van den Heever said.
