By Sfundo Parakozov
WINDHOEK (Reuters) -Namibia’s central bank governor said on Wednesday that the country has mobilised the necessary funds to redeem its $750 million Eurobond due on October 29, the largest single debt maturity in its history.
The Eurobond, issued in 2015, was aimed at addressing Namibia’s development needs, supporting the national budget, and bolstering the balance of payments.
The redemption amount, calculated at a Namibia dollar-to-U.S. dollar exchange rate of 17.5, totals 13.5 billion Namibian dollars ($779 million), according to the Bank of Namibia.
“We have mobilised the full amount. And that mobilisation is within the sovereign debt management strategy of the bank,” Governor Johannes !Gawaxab said during a Monetary Policy Committee briefing on Wednesday.
He emphasised Namibia’s commitment to maintaining creditworthiness.
“If we issue paper, there’s a clear testament that we are committed to deliver on our promises. The economic fundamentals of the country are above board,” !Gawaxab said.
But the central bank chief warned that Namibia’s foreign reserves are projected to decline as a result of the Eurobond redemption.
Reserves are estimated to decrease 25.11% to 47 billion Namibian dollars by the end of 2025, from 63 billion Namibia dollars in 2024.
Despite that anticipated drop, the central bank affirmed that reserves remain robust and proactive measures, including exploring currency swap line arrangements with other financial institutions, are under way to safeguard reserves and ensure external obligations are met.
The bank added that reserves are expected to slightly recover in 2026 to approximately 53 billion Namibia dollars.
($1 = 17.3298 Namibian dollars)
(Reporting by Sfundo Parakozov Editing by Colleen Goko and Joe Bavier)
