By: Nghiinomenwa-vali Hangala
Bank Windhoek’s new 3-year Sustainability-Linked Bond (SLB) has attracted N$525.5 million in bid values during its auction on 19 August 2025.
The auction was 1.75 times oversubscribed, Bank Windhoek revealed in a press statement last week. The oversubscription and bid values highlight the availability of capital looking for growth avenues in the country.
An SLB is a fixed-income instrument (bond) that the bank will use to raise money for specific purposes, aligning with its theme.
According to the Bank’s statement, the financial and structural characteristics of the SLB are tied to predefined sustainability objectives, differentiating it from the typical use of proceeds-type instruments.
Commenting on the outcome of the auction, Bank Windhoek’s chief treasurer, Claire Hobbs, explained that the bond oversubscription is speaking to investor interest for the specific asset type, which is a first of its kind for the Namibian market.
Of the allocated bids, N$250.5million was allocated at a rate of 3-month JIBAR + 80 basis points (bps) in terms of interest or reward.
Hobbs indicated that the SLB is part of their commitment to supporting Namibia’s economic growth by leveraging its mandate as a financial institution to mobilise capital and commit to stimulating inclusive and sustainable development.
She explained it is of importance to continue financing traditional growth sectors, at the same time prioritising emerging, high-impact niches within the economy.
One such area is sustainable finance, which is not only about risk and return, but also prioritises specific impact areas linked to national development goals and sustainability objectives, she explained.
Hobbs indicated that in issuing the new bond, the bank builds on its experience as the first Namibian issuer of Green and Sustainability Bonds, using the lessons and momentum gained from its previous instruments to explore new models that further drive sustainability integration into its operations.
“The Sustainability-Linked Bond is a significant evolution in our approach: unlike use-of-proceeds bonds, this instrument directly commits the Bank to achieving defined sustainability performance targets,” said Hobbs
Moreover, Bank Windhoek has committed to deploying N$300 million in sustainable finance over the next two years.
The Sustainability-Linked Bond is the latest corporate bond listing on the Namibia Securities Exchange (NSX).
Commercial banks are dominating the capital market in terms of using the Security Exchange to raise capital, second only to the government.
According to the Securities Exchange daily update, the country’s commercial banks, including Letshego Bank, have issued N$4.6 billion (nominal issue) worth of bonds. This includes green, social, and sustainable bonds, with the commercial banks being the only ones to issue them.
Beyond the commercial banks, the only other private sector companies to have utilised the NSX to raise capital are Gondwana Holdings Limited, Oryx Properties Limited, Paratus Namibia Holdings Ltd, TT Treasury Limited, and Alpha Namibia Industries Renewable Power Limited.
The Development Bank of Namibia and Namibia Water Corporation Limited are the only two state-owned enterprises to have utilised the NSX to raise capital, or at least listed a bond programme. This is despite guarantees from the government for them to utilise their balance sheet and raise capital from the market. erastus@thevillager.com.na
