Photo: Contributed
By: Nghiinomenwa-vali Hangala
In the 8th switch auction of the GC27, investors have reached an agreement with the government for it to keep N$658.8 million that was invested in the bond, which is maturing next year.
More than half a billion will be invested in other existing bonds and will earn interest twice a year for the investors.
This was revealed in the announcement of the Tender Result Date, which was held on 21 October 2026.
For last week’s switch auction, investors in the GC27 have submitted N$694.2 million worth of bids to the central bank in an attempt to move their money to other bonds.
The switching auction gives a chance to investors who do not want to liquidate their investment to move their capital to other long-dated bonds.
In other words, during the auction, investors who have given money to the government with a promise that it will be returned in early 2027 have decided that the government must keep it for longer in exchange for interest.
Investors were given the option to move their money into the GC29, G34, GC37, GC40, GC43, GC45, GC48, GC50, and the GC53 bonds.
The results show that investors were mostly interested in the GC29, which received 13 bids worth N$213.2 million, and all of it was switched.
Followed by the GC34 Bond, which attracted 12 bids worth N$178 million; the Central Bank has switched more to this bond than the submitted bids.
The auction results show that the central bank has switched N$189 million to the GC34.
The Villager analysis has also picked up that most investors are quite reluctant to put their money on long-term bonds.
None of the long-dated bonds have received N$100 million in bids beyond the GC27 and GC34.
21 October is the 8th switch auction of the GC27, which is maturing early next year.
With the latest switch auction, the government still owes N$2.4 billion to investors, which it has
to repay.
