Namibia Completes Largest Single-Day $750 Million Eurobond Repayment

Namibia has successfully repaid its US$750 million Eurobond, marking the largest single-day debt repayment in the country's history and demonstrating its commitment to fiscal discipline and creditworthiness. The repayment was financed through a central bank-managed sinking fund of approximately US$444 million and additional borrowing from domestic banks. This move is seen as enhancing Namibia's creditworthiness and positioning the country favorably for future international capital market engagements, while reducing foreign reserves from around N$54.7 billion to about N$47 billion by year-end. The Eurobond, issued in 2015 at a 5.25% coupon rate, was used to finance infrastructure, development projects, and budget support, contributing to economic growth amid global financial uncertainty. Despite this achievement, concerns remain about Namibia's reliance on domestic borrowing, potential risks from declining reserves, and structural economic challenges such as unemployment and dependence on commodity exports. The government plans no immediate issuance of new Eurobonds, focusing instead on balancing its debt profile with a majority of borrowing from domestic sources.