Namibia’s Ministry of Finance has announced plans to raise $122 million from the domestic market and explore syndicated loan options to partially refinance its $750 million eurobond maturing on October 29, 2025.
The remainder of the obligation will be covered through the government’s sinking fund, which currently holds approximately $628 million.
According to an official statement issued on Monday, the government has opted to prioritize local borrowing given the elevated domestic liquidity and widening spreads in the international capital markets.
The eurobond, issued in 2015 at a coupon of 5.26% and hedged at 7.52%, represents the largest single-day debt maturity in the country’s history.
“We aim to raise $122 million in the domestic market before the eurobond becomes due,” the Ministry said in its response to emailed inquiries. “We are leveraging strong local liquidity conditions and investor appetite to minimize reliance on offshore borrowing.”
Namibia has received preliminary refinancing proposals from several international, regional, and domestic financial institutions. The government is currently finalizing a formal request for proposals (RFP) that will soon be distributed to facilitate issuance of medium-term notes to address the remaining refinancing gap.
The Ministry also confirmed plans to roll over all maturing domestic bonds within the current fiscal year to create the necessary fiscal space to redeem the eurobond.
Additionally, the government will frontload its borrowing program in the first half of the 2025/26 financial year to align with its debt service obligations.
“This strategy is in line with our preference for domestic over foreign borrowing, especially in light of deteriorating credit ratings and higher yields in the international bond market,” the statement added.
Namibia’s strategic pivot to local funding reflects its effort to reduce external debt exposure while optimizing debt servicing costs. The country’s 2011 and 2015 eurobond issuances carried significant long-term obligations, with total debt-service costs amounting to N$13.3 billion over 15 years, all paid to offshore investors.
“At the time, local capital markets lacked depth, and options were limited,” the Ministry noted. “Now, with robust liquidity and growing local appetite, domestic financing is the more viable and cost-effective approach.”
The Ministry’s shift is supported by favorable monetary conditions and a steady rise in investor confidence. The Namibian dollar has remained relatively stable, and the domestic bond market has shown resilience in recent auctions.
Yields on Namibia’s $750 million eurobond rose three basis points to 7.77% by 10:03 a.m. in London trading, reflecting investor attention on the country’s refinancing strategy. Despite the rise, analysts note that the presence of a sizable sinking fund and a proactive refinancing plan provide a level of assurance to creditors.
As one of the world’s leading uranium suppliers, Namibia is seeking to maintain fiscal discipline while managing external debt obligations.
The Finance Ministry emphasized that the current strategy is designed to enhance debt sustainability and reduce long-term foreign exchange risk.
With the eurobond maturity now less than five months away, the government’s focus remains on executing a balanced funding strategy that leverages domestic strength and prudently engages external support only where necessary.
