By: Nghiinomenwa-vali Hangala
The Bank of Namibia on Wednesday received 108 bids, worth N$950.9 million, as investors sought to switch their money from the GC27 bond.
This comes after the Ministry of Finance invited various investors (individuals and institutions) to switch their N$6.6 billion investment in the GC27 Bond.
According to the Tender Switch Auction result, despite the almost billion-dollar worth of bids, the central bank did not accept all bid rates for the switch.
As a result, only N$698.1 million was switched to other long-dated bonds.
The investors were given the options of GC29, GC34, GC35, GC37, GC40, GC43, GC45, GC48, GC50, and GC53 dirty prices.
Moreover, most of the investors only wanted to switch their money for short-term bonds, as they mostly chose between GC29 and GC40.
Most of the investors were interested in the GC29; during the auction, it received N$478,8 million worth of bids (37).
Out of the 37 bids, 31 were switched, resulting in N$462,9 million being switched to the GC29.
There was less interest in long-dated bonds, especially from GC43 to GC53 – not more than N$10 million was switched to these bonds, while nothing was switched to GC53.
Despite the N$698.1 million that was switched, the government still owes around N$5.9 billion under the GC27.
More switch auctions are planned for the GC27 before maturity next year.
erastus@thevillager.com.na
