CHAMWE KAIRA
RMB Namibia acted as arranger to First National Bank of Namibia Ltd. (FNB Namibia) for the issuance of N$500 million Tier 2 Capital Notes off their NSX-listed Domestic Medium-Term Note (DMTN) Programme.
This issuance represents the first Basel III-compliant notes to be placed in the Namibian market, and the successful outcome sets a precedent for future issuances, RMB said.
Leading the process end to end, RMB said it provided advice with regards to the establishment of the underlying terms of the notes, the DMTN Programme, the arrangement, as well as the facilitation and listing of the bonds in the debt capital market.
Total bids to the value of N$725 million were received from 10 investors, resulting in the issuance being 1.5 times oversubscribed, evidence of robust investor sentiment for the credit.
“The oversubscribed issuance put pressure on the pricing, ensuring that FNB Namibia received the best possible rates for the notes issued,” RMB said.
RMB said that relying on its wealth of knowledge and experience of issuing similar notes in the South African debt capital markets, as well as leveraging its local expertise, RMB ensured that the note is structured in line with the relevant Namibian regulations as well as counting for group regulatory capital.
“The award-winning RMB Debt Capital Markets (DCM) team is well-versed in originating the issuance and syndication of debt across sectors, asset classes, and currencies to ensure clients’ capital raising is optimal for their specific business needs,” RMB said.
The company said that working across multiple sectors, asset classes, and currencies, the DCM team provides specialist DCM solutions covering legal and regulatory requirements, execution capabilities, trading, sales, and research for African borrowers.
Selma Kapeng, FirstRand Namibia Group treasurer said: “This new-to-market solution is further evidence of FNB Namibia’s commitment to deepen the Namibian Capital market, connecting smart capital to ambitious enterprise, with bolstered risk capital, FNB Namibia is well positioned to deliver on its cardinal purpose of building a globally competitive Namibia.”
She added that this Domestic Medium Term Note Programme presents an additional investment avenue for Namibian and international investors seeking top quartile risk-adjusted returns.
“Our client-centric approach is what guides us to design innovative solutions and originate multiple products to meet our clients’ unique needs.”
