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Development Bank’s last of three fixed rated bonds raises N$290 million

Development Bank’s last of three fixed rated bonds raises N$290 million

The Development Bank of Namibia (DBN) announced the successful full redemption of its DBN23 bond, which was the last of three fixed-rated bonds issued by the bank in 2018 and had an amortizing structure.

DBN20A1, the first of the three, was issued in February 2018 raising N$140 million, DBN20B was issued in March 2018 raising N$70 million and DBN23, the last of three, was issued in December 2018 raising N$290 million.

DBN20A1 was repaid in February 2023, DBN20B was repaid in March 2023 and DBN23 was repaid in August 2023. The proceeds of the three bonds were utilised for lending to several developmental projects funded by DBN.

DBN CEO, John Steytler, expressed happiness with the sound governance of DBN and illustrated that “It is always a significant milestone when bonds are successfully repaid. This inspires confidence in investors as a positive reflection of the financial health and good management of DBN.”

In total DBN has issued five bonds, including DBN23, since listing its medium-term note programme on the Namibian Stock Exchange in July 2017. The programme falls within the twin mandate elements of the Bank to develop new, sustainable methods of investment and to enable the private sector to participate in funding development locally.

“It is also worth noting that the funds raised from these bonds have been put to good use in supporting various developmental projects, which is essential for the growth and prosperity of Namibia,” Steytler said.

Since the launch of the Bank’s inaugural Sustainable Finance Framework in April 2023, DBN is currently advanced in the arrangement of a debut sustainability bond under the framework.

DBN is rated by Fitch Ratings. The Bank currently has a foreign currency long-term issuer default rating (IDR) of BB-/Outlook Stable and a national long-term IDR of AA+’ (zaf)/Outlook Stable.


 

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