DBN aims to raise N$2.5bn
The Development Bank of Namibia (DBN) plans to raise up to N$2.5 billion through selling bonds and arranging credit lines to boost lending to businesses, chief executive Martin Inkumbi said on Monday. The DBN, he said, was considering its first capital raising in the fourth quarter of this year, as part of a plan aimed to lessen its dependence on the National
Treasury.
Treasury at present is the main source of financial support for the DBN. The proposal has the Finance Ministry’s backing, Inkumbi said.
“The bank is ready to commence with its debt-capital raising programme, as determined by the funding needs of upcoming development projects and the bank’s liquidity requirements,†Inkumbi said.
The State-run bank is busy strengthening its capacity in lending to companies developing projects in the world’s fifth-biggest uranium producer.
Economic growth is forecast to reach 4.3% this year, faster than the Southern African Development Community’s average of 3.9%, according to the International Monetary
Fund.
The institution’s State-approved capital-raising rules allow it to borrow up to 100% of its own capital.
Fundraising tools would be used “to appropriately match the assets to be financed,†Inkumbi
said.
The bank would use money raised “to advance loans to economically viable projects and businesses†and financing would be arranged “when there is a needâ€, he added.
WINDHOEK BLOOMBERG
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