Almost N$1 Billion Switched From GC25 Bond

 

By: Nghiinomenwa-vali Erastus

 

Investors in the GC25 Bond, maturing in October 2025, have moved N$944.9 million of their investment into other long-term government debt instruments.

This shift means some investors have chosen to extend their lending to the government, opting to receive interest payments twice a year on new bonds.

The transfer follows a switch auction held last week by the Bank of Namibia, which acts as the government’s agent for issuing and managing fixed-income securities.

Prior to the auction, the government had borrowed N$3.5 billion through the GC25 bond, scheduled for repayment next October.

However, ahead of the bond’s maturity, the government offers investors the option to switch their investment into longer-term bonds through a switch auction.

For the GC25 auction, investors were presented with 10 Internal Registered Stocks to consider switching into: GC27, GC28, GC32, GC35, GC37, GC40, GC43, GC45, GC48, and GC50.