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The Namibian Ministry of Finance and Public Enterprises says the government is prepared to meet its USD 750 million maturing Eurobond obligation on 29 October 2025. The government has employed a savings strategy that involves setting aside funds specifically designated to cover the upcoming maturity.
The Namibian Ministry of Finance and Public Enterprises says the government is prepared to meet its USD 750 million maturing Eurobond obligation on 29 October 2025. The government has employed a savings strategy that involves setting aside funds specifically designated to cover the upcoming maturity, with USD 500 million from the reserves being used to pay off some of the bonds, stated the Namibian Minister of Finance and Public Enterprises, Ipumbu Shiimi.
Namibia will pay off some of the bonds, close to USD 500 million, from the savings that the ministry putting aside for this purpose, stated the Minister. He further explained that for the remaining balance of approximately N$4 billion, the government is exploring domestic borrowing options.
This could involve issuing domestic bonds, potentially attracting local pension funds seeking investment opportunities. There will be a remainder of USD250 million that’s the one we’re trying to see if should we convert into a domestic bond, for instance, so, maybe our pension funds here are looking for some domestic instruments so we can borrow from them, and repay the bond, said Shiimi.
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Paying off a significant portion of the Eurobond will bring the debt-to-GDP ratio down to around 56%, which is better than the international standard of 60%. This will also lead to lower interest payments and reduce the vulnerability of the total debt and interest payments to changes in exchange rates.
