Namibia’s path towards redeeming its Eurobond obligation

The Namibian government will for the first time in its 35-year history make its single biggest payment of US$750 million aimed at honouring its Eurobond obligation first accessed in 2015 which is due later this year October.

While the payment requirement seems steep, with a with only US$500 million of the US$250 million secured in the government’s savings in a sinking fund as at February 2025, and its approach towards pro-actively raising money through a sinking fund and actively communicating with the markets with regards its intended desire to redeem the obligation go a long way in helping Namibia build its credibility in the eyes of international investors, but also coupled with its growth ambitions.

Namibia will demonstrate to the international community that it is capable of honouring its debt obligations and also managing the resources at its disposal responsibly, a huge nod for a country that has not only never defaulted on its debt obligations, but is keen to grow its economy amid a myriad of geo-political and socio-economic factors, and is feather in the cap for Namibia’s treasury, and for that I say well done.