WINDHOEK, Oct. 29) — Namibia has successfully redeemed its 750-million-U.S.-dollar Eurobond, marking the country’s largest single debt maturity and a major step toward strengthening fiscal sovereignty, Finance Minister Ericah Shafudah said on Wednesday.
Speaking at a ceremony in Windhoek, Shafudah described the redemption as a historic milestone that reflects Namibia’s commitment to fiscal discipline, prudent debt management, and responsible borrowing.
“The successful redemption of our Eurobond is a testament to our resilience, strategic foresight, and confidence in our financial systems,” Shafudah said, adding that the government had planned the process carefully to avoid disruption to services and maintain macroeconomic stability.
The 750-million-U.S.-dollar Eurobond was issued in 2015 at a coupon rate of 5.25 percent. The proceeds were used to finance critical projects in infrastructure, energy, education and healthcare.
Earlier, the country’s first Eurobond, issued in 2011 for 500 million U.S. dollars, was redeemed in 2021. Shafudah said the government accumulated 444 million U.S. dollars in a sinking fund to prepare for repayment and raised the remaining 306 million U.S. dollars domestically through commercial banks.
“This strategy allowed us to avoid re-entering the Eurobond market under unfavorable conditions, preserved our foreign reserves, and reinforced investor confidence in Namibia’s creditworthiness,” she said.
According to the minister, Namibia’s overall debt portfolio will now stand at about 85 percent domestic and 15 percent foreign, with 90 percent of the external debt denominated in South African rand, limiting exposure to exchange rate risk.
“The redemption of the Eurobond transcends a mere financial milestone; it embodies our sovereignty, credibility, and dedication to future generations,” Shafudah said. (Xinhua
