Washington D.C., March 30, 2016—IFC,
a member of the World Bank Group, has launched the first bond by a non-resident
issuer in the Namibian capital markets, raising 180 million Namibia dollars—equivalent
to $12 million—for private sector development in the country.
The five year bond is named “Namib” after the world’s oldest desert.
Namib means “vast space” in the Nama language and gave rise to the name
of the country. The bond is part of a medium term note program registered
with the Namibian Stock Exchange that allows IFC to issue up to 10 billion
Namibia dollars, or approximately $650 million, in bonds in the domestic
IFC will invest the proceeds of the bond to support private sector development
in Namibia. The bond yield is 9.812 percent per annum.
“Developing Namibia's capital markets will be critical for long-term economic
development, and especially for the expansion of the infrastructure and
banking sectors,” said I. W. Shiimi, Bank of Namibia Governor. “We hope
that other international and domestic issuers will follow IFC and connect
savings to Namibia’s private sector investment needs.”
The bond is issued under IFC’s Pan-African Domestic Medium Term Note Program,
which was launched in May 2012 to support capital market development in
the region. Nine countries are part of the program, including Rwanda and
Zambia where IFC has already issued local currency bonds.
IFC supports local capital market development in Africa by working with
governments, regulators and market authorities to put in place frameworks
that encourage market entry by domestic and international issuers. IFC
also supports African companies looking to access capital markets.
More recently, IFC launched a new capacity building program for African
capital market regulators and practitioners. The program is a partnership
with the Milken Institute and George Washington University and will create
a network of experts and advocates to support the region’s capital markets.
“Deep, vibrant capital markets create access to long-term, local-currency
finance for the private companies so they can get tailor-made financing
for growth and expansion,” said Jingdong Hua, IFC Vice President and Treasurer.
“The IFC Namib bond is an integral part of IFC’s strategy to support
Africa’s capital market development and create access to finance for the
region’s private sector.”
Standard Bank and IJG Securities (Pty) Ltd are lead managers for the bond
issuance. IJG Securities is also the sponsoring broker on the transaction,
while Standard Bank and Transfer Secretaries (Pty) Ltd are fiscal agents.
IFC issues local currency-denominated bonds in emerging market currencies
as part of its regular program of raising funds for private sector development,
and to support the development of domestic capital markets. In many cases
IFC is the first, or among the first, nonresident issuers in a domestic
market. IFC bonds are rated triple-A by Moody’s Investors Service and
Standard & Poor’s.
IFC, a member of the World Bank Group, is the largest global development
institution focused on the private sector in emerging markets. Working
with more than 2,000 businesses worldwide, we use our capital, expertise,
and influence, to create opportunity where it’s needed most. In FY15,
our long-term investments in developing countries rose to nearly $18 billion,
helping the private sector play an essential role in the global effort
to end extreme poverty and boost shared prosperity. For more information,