DBN raises N$291 million on JSE
The listing of an instrument on the JSE forms part of the DBN's medium-term note programme worth N$2.5 billion.
The Development Bank of Namibia raised N$291 million from its medium-term note programme.
The medium-term note programme, worth N$2.5 billion, is part of the bank's strategy to diversify its source of funding and raise money on the market for on-lending to financially viable, environmental and socially acceptable projects with developmental impact in line with the bank's business plan.
In a media statement issued on Wednesday, DBN spokesperson Di-Anna Grobler said the three-year bond (DBN20) was issued through an oversubscribed auction process that was held on 30 August 2017.
Grobler explained that the bond pays a floating rate coupon quarterly which is linked to the Johannesburg Interbank Average (JIBAR) Rate and is expected to mature in September 2020.
“This marks the first time that the bank has formally approached Namibian capital markets to raise funding, which the bank will issue regularly in the markets depending on the future cash flow requirements,” said Grobler.
About 26 staggered bidders from 13 investors in Namibia and South Africa supported and oversubscribed.
The total subscription amounted to N$428 million, of which DBN has issued N$291 million at a spread of 190 basis points over the current JIBAR rate.
The bank planned to raise between N$200 to N$300 million on its debut bond issue.
Grobler said DBN has been well capitalised over the years by its sole shareholder, the government, although the bank has recognised the need to leverage its unencumbered balance sheet.
NAMPA
The medium-term note programme, worth N$2.5 billion, is part of the bank's strategy to diversify its source of funding and raise money on the market for on-lending to financially viable, environmental and socially acceptable projects with developmental impact in line with the bank's business plan.
In a media statement issued on Wednesday, DBN spokesperson Di-Anna Grobler said the three-year bond (DBN20) was issued through an oversubscribed auction process that was held on 30 August 2017.
Grobler explained that the bond pays a floating rate coupon quarterly which is linked to the Johannesburg Interbank Average (JIBAR) Rate and is expected to mature in September 2020.
“This marks the first time that the bank has formally approached Namibian capital markets to raise funding, which the bank will issue regularly in the markets depending on the future cash flow requirements,” said Grobler.
About 26 staggered bidders from 13 investors in Namibia and South Africa supported and oversubscribed.
The total subscription amounted to N$428 million, of which DBN has issued N$291 million at a spread of 190 basis points over the current JIBAR rate.
The bank planned to raise between N$200 to N$300 million on its debut bond issue.
Grobler said DBN has been well capitalised over the years by its sole shareholder, the government, although the bank has recognised the need to leverage its unencumbered balance sheet.
NAMPA
Comments
Namibian Sun
No comments have been left on this article