Namibia to Sell Bond in South African Market to Fund Budget Gap
Posted by Bloomberg on 26 June 2014
By Felix Njini
Namibia plans to tap interest generated by its debut Eurobond almost three years ago when it sells debt in the South African market late this year or early in 2015 to help finance the country's budget deficit. The government will use the Johannesburg stock exchange's listed bond program, Finance Minister Saara Kuugongelwa-Amadhila said in an interview yesterday in the capital, Windhoek. The size of the bond depends on Namibia's "cash flow requirements" and market conditions, she said.
Namibia, the world's biggest offshore diamond miner and fifth-largest uranium producer, projects its deficit to narrow to 5.4 percent of gross domestic product in the year through March, from 6.4 percent in the previous 12 months. The government will build on interest shown in its October 2011 $500 million Eurobond, the minister said. That bond was more than five times oversubscribed, the southwest African nation's central bank said at the time.
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