By: Nghiinomenwa-vali Hangala
The government will hold the last switch auction for the GC26 bond in an attempt to convince investors to keep their money with the government by switching to other bonds.
According to the domestic debts compilation as at the end of January 2026, there is an outstanding amount of N$1.9 billion (to be repaid to investors if not switched) in the GC26 bond. The GC26 is set to mature in April, when the government would be expected to reimburse investors from whom the government borrowed through that specific bond.
However, before maturity, the government grants investors an opportunity to switch their investment and keep funds circulating in government bonds for future reimbursement with interest. The switch also eases pressure on the government to repay large amounts at once, especially when it is still borrowing to fulfill its budget commitments and liquidity issues.
For this, the central bank, which borrows on behalf of the government, has sent out a notice to GC26 investors (institutional and retail) that a last switch auction is scheduled for 25 February 2026, before the security matures in April.
Since April last year, investors have switched N$4.5 billion of their investments in the GC26 to other long-term bonds.
The upcoming auction will determine how much the government will have to repay investors of the N$1.9 billion outstanding on the GC26. Following this repayment or switching of GC26 debts, the government will also invite investors who intend to keep their investment in fixed income to switch to other long-term bonds.
“We shall conduct the switch auctions for the GC27, with the first auction to take place on 25 March 2026,” the central bank announced.
So far, the government has borrowed N$7.7 billion from domestic investors through the GC27, which is projected to mature in June 2027. With repayments expected at the time of maturing, current patterns indicate that investors may opt to switch instead.
