By: Nghiinomenwa-vali Hangala
A switch auction that was held on Wednesday, mainly for investors to move their investments in the GC26, resulted in only N$149.8 million being switched to the existing long-term bonds.
According to the available information released by the end of November last year, the government has borrowed N$2.01 billion through the GC26 after various auctions last year.
The Bank of Namibia, on behalf of the government, invited holders/investors on the GC26 to participate in the switch auction scheduled for Wednesday, 21 January 2026, through a notice from the central bank last week.
The switch involved extending the money/debt to the government for a longer period by buying a portion of other bonds with longer maturity dates.
These include the GC30, GC32, GC35, GC37, GC40, GC43, GC45, GC48 and the GC50.
Market participants were invited to bid the nominal amounts of the GC26 they wish to sell for destination stocks and the yield/price at which they wish to buy the destination stock.
The auction results show that GC26 investors submitted N$166.2 million in bids, seeking to move their investments to the 10 available bonds.
However, only N$149.8 million was switched across available bonds.
Allocations were made in ascending order of switch ratios (GC26 dirty prices divided by GC28, GC30, GC32, GC35, GC37, GC40, GC43, GC45, GC48 and the GC50 dirty prices). BoN fixed the GC26 switch yield, and thus the dirty price.
Total government debt securities stood at around N$176.1 billion, and of this, N$145.0 billion was borrowed from domestic investors (not adjusted for January’s borrowing).
The government continues to borrow to meet its financing needs for FY2025/26.
It has also invited investor participation in the auction of its four treasury bills, looking to borrow N$1.6 billion.
