Namwater Issues N$200 Million NSX Bond

STATE water utility, Namwater has issued a N$200 million bond on the Namibian Stock Exchange (NSX). It was announced this week that Standard Bank amp IJG Securities facilitated NamWater’s debut corporate bond issuance.

The issuance was supported by Standard Bank Namibia and IJG Securities who acted as joint lead arrangers, sponsor and rating aisers to NamWater, the announcement said.

NamWater had anticipated to raise between N$150million and N$200million, however due to an overwhelming positive response from the market, with total bids amounting to N$468million received from investors, a total of N$200million was allocated and issued to successful investors.

Furthermore, Standard Bank has a g presence in the domestic currency markets in Africa and raised over US$3,1 billion in 2012 alone.

IJG Securities has extensive and proven capital market experience in Namibia and has helped raise in excess of N$2,2 billion on the local bond market for issuers since 2000.

Mark Spaumlth, group managing director of the IJG Group of Companies, said the successful NamWater issue proves that there is an alternative financing and investment opportunity for both issuers and investors outside of government bonds, which further deepens the Namibian capital market.

“In light of changing bank regulations, the capital markets offer a viable alternative to traditional funding mechanisms whilst providing an issuer with competitive funding costs and instrument flexibility,” said Gaby van Eeden, manager of Investment Banking at Standard Bank Namibia. In addition, Standard Bank Namibia’s coverage manager Nambata Angula said the success of NamWater’s bond further aids in growing the existing domestic capital markets in line with the Namibian Financial Sector Charter.

“This is a positive sign for the Namibian Capital Market and it is also a good way to raise funds or capital that will ultimately stimulate the financial markets,” says Angula.

Source : The Namibian