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GVT bonds continue to raise billions

by Honorine Kaze

Although developments at the Namibian Stock Exchange (NSX) for the last half of last year were affected by the global financial crisis, the first quarter of this year has maintained an upward trend.
Bank of Namibia (BoN), in their 2012 financial stability report, stated that, “The markets were mostly influenced by the implementation of monetary policies in the major advanced economies in response to shocks to the global economy.”
The NSX monthly stock exchange shows that both the domestic and international markets have been improving since the beginning of the first quarter of this year moving from N$12.2b in January to N$13.2b last month.
According to the NSX, bonds floated on the international financial markets by Government only raised about N$4b from late December last year to date.
“The Namibian Eurobond has once again been nominated this year in the African Bankers’ Award 2012 Eurobond. It clinched two awards last year in the Euro money’s Middle East and Africa Deal of the Year 2012 as well as the EMEA Finance Magazine’s award for the Best Sovereign Bond Deal in Africa for 2011,” notes BoN report in part.
However, NSX bonds have improved marginally raising about N$8b from January to N$9b at the end of last month.
The local bonds at the NSX are running with codes from GRN 12 to GRN 30 while GRN 14 seems to have improved since the beginning of the year primarily raising N$8m in January to N$1.3b last month, whilst GRN 12 and GRN 15 have remained constant at N$1.3 b and N$1.6b, respectively.
The BoN stability report also points out that despite the decline in performance of the overall index, the local index rose by 5.0% from 210.6 points at the end of the first-half of 2011 to 221.2 at the end of December last year; translating into a raise of capitalisation on the local market by 17.7% from N$9.7b in the first-half to N$9.3b at the second-half of 2011.
On the other hand, the State-owned enterprises (SoEs) have remained stagnant - Telecom, NamPower and Road Fund Administration, which also floated their bonds at NSX, earned N$1.4b last year with NamPower Corporation 2020 leading the sales with N$5m.
The financial institutions  - Nedbank, First National Bank of Namibia (FNB), Bank Windhoek and Standard Bank Namibia, raised N$1.3b in March and April indicating an improvement of N$1.07b in real terms.