Imelda Ambondo
Namibia has spent N$342 million in interest to fully repay its N$13.5 billion Eurobond.
Finance Minister Ericah Shafudah told Namibia Business Review last week that this payment closed a decade-long financial chapter for the country.
“Cumulatives from 2016 to 2025 translated to N$342 million,” Shafudah said. The Bond was fully paid back on 29 October 2025.
The bond, issued in 2015, carried a 5.2% coupon over ten years, which meant Namibia had to make regular interest payments to investors. These payments helped fund critical infrastructure projects, cover budget gaps, and support economic growth during a turbulent period.
“Engaging with international capital markets serves as a testament to Namibia’s readiness to navigate its own future, reinforcing our confidence as a nation dedicated to sustainable progress. This initiative also underscores the trust placed in our governance, our institutions, and our collective vision for fostering inclusive development,” Shafudah said.
A coupon payment is the periodic interest payment a bond issuer makes to a bondholder. It is a fixed amount calculated as a percentage (the coupon rate) of the bond’s face value. These payments provide regular income to investors and are typically made semi-annually or annually until the bond matures.
“The second Eurobond enabled us to bridge critical financing gaps, support our national budget, enhance reserves, and stimulate economic growth during a period of global financial uncertainty,” Shafudah said.
To meet these interest payments, the government drew on N$6.7 billion from a sinking fund built over the years, and borrowed N$4.6 billion from local banks. Standard Bank provided N$3 billion, First National Bank contributed N$1.5 billion, and Bank Windhoek in partnership with ABSA chipped in with N$1.5 billion.
“This approach preserved our foreign reserves, reduced exchange rate risks, and reinforced investor confidence,” Shafudah said, highlighting the careful financial planning behind the repayment.
Shafudah said the Eurobond redemption reflects Namibia’s discipline in debt management. With the bond fully repaid, the country’s debt profile now stands at 85% domestic and 15% foreign, with 99% of government debt protected from currency fluctuations, a shield against potential global market shocks.“Namibia keeps its promises. We borrow wisely, invest strategically, and repay responsibly,” said Shafudah.
She added “Namibia’s Eurobond journey is more than numbers; it reflects our sovereignty, credibility, and steadfast commitment to building a prosperous future together.”
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