Development Bank settles its first issued bond
The Development Bank of Namibia has settled DBN20, the first bond that it issued under its N$2.5 billion Medium-Term Note Programme listed on the Namibian Stock Exchange.
According to the Bank, the settlement of the bond which matured on 4 September 2020 went smoothly and successfully. At maturity it had 38 bondholders (37 Namibian entities and 1 foreign entity).
The issuance of DBN20 in September 2017 marked the first time that the Bank formally approached Namibian capital markets to raise funding and deepen the capital market. The Bank has since issued another three bonds (DBN20A1, DBN20B and DBN23) which raised a total of N$500 million for lending to financially viable, environmental, and socially acceptable projects with developmental impact.
DBN20A1, DBN20B and DBN23 are the first and only amortizing bonds issued and listed on the Namibian Stock Exchange.
Since listing its N$2.5 billion Medium-Term Note Programme in July 2017, the Bank is currently the fourth largest issuer on the Namibian Stock Exchange outside of the Namibian Government and the largest issuer in the SOEs category on the Namibian Stock Exchange.
The Bank has a long-term issuer default rating of BB and national scale rating of AAA(zaf) by Fitch ratings. This rating is equal to the rating of the government.