By: Nghiinomenwa-vali Hangala
Those who have lent their money to the government until 2027 and 2033 respectively through inflation-linked bonds will be rewarded with their first annual coupon payment on 15 April 2026.
According to the Bank of Namibia, which borrows on behalf of the government, the investors of the two inflation-linked bonds, GI27 and GI33, will receive N$127.5 million in coupon payments.
As of the end of February 2026, the government has borrowed N$4.5 billion from the two bonds, with a promise to repay at maturity. However, before maturity, the government pays interest (in the form of coupon payments) twice a year for making use of the borrowed funds.
From the total borrowed, N$1.7 billion is through the GI27 linker and N$2.8 billion through the GI33. Of the registered floating bonds, the government has 7 inflation-linked bonds, which are the least used due to their coupons, which are influenced by inflation.
To date, the government continues to borrow to meet its 2025/26 (current) Budgetary Commitments. On Wednesday, the government conducted another bond auction where it raised N$750 million from its 16 bonds auctioned on the day.
The short-term bonds, GC28, GC30, GC32, GC35, and GC37 attracted more bidders with N$1.5 billion submitted, but the government only sought N$333 million from the five bonds.
At the same time, the government is inviting investors to the first switch auction of the GC27 scheduled for next week, as a means of convincing investors to move their money to other long-term bonds.
As of the end of February 2026, the government has borrowed N$7.8 billion through the GC27, and will host a number of switch auctions to retain some of the funds to avoid redeeming a large share.
erastus@thevillager.com.na
