The First National Bank of Namibia Ltd (FNB Namibia) has successfully launched an N$500 million sustainability note, highlighting a key step in their continued dedication to sustainable financing.
Rand Merchant Bank (RMB) was instrumental in this deal, serving as the Arranger, Dealer, Sustainability Advisor, and Coordinator within the framework of FNB Namibia’s NSX-listed Domestic Medium-Term Note Programme.
This new issuance, building on FNB Namibia’s earlier green bond effort, saw significant enthusiasm from investors. The auction was 1.88 times oversubscribed by 13 entities, amassing more than N$940 million worth of bids. In the end, N$500 million in three-year bonds were distributed among 11 investors at an interest rate set at 3-month JIBAR plus 78 basis points. This pricing marks a notable enhancement relative to their last major green offering, which carried terms of 3-month JIBAR plus 145 basis points. It underscores a rising preference amongst investors for environmentally conscious financial products.
Proceeds generated from the sustainability note will fund suitable green and social initiatives, underscoring FNB Namibia’s commitment to backing ventures that boost environmental stewardship and societal progress. The primary sectors addressed encompass renewable power sources, economic accessibility, and community facilities—each considered vital for building a stronger, more equitable Namibian economy and advancing the country’s developmental goals.
The issuance was designed within the framework of FirstRand’s newly released Sustainable Finance Framework (SFF) from November 2024. This framework underwent an independent evaluation by S&P, guaranteeing compliance with global standards for sustainable finance practices.
"FNB Namibia has successfully launched a N$500 million Sustainability Note, highlighting the bank's dedication to integrating sustainability into its financing structure," stated Selma Kapeng, Treasurer of FirstRand Namibia Group.
The transaction adheres to international standards, directing funds toward significant environmental and social projects that promote enduring resilience and equitable economic expansion. By issuing this, we strengthen our position as a driver of sustainability, simultaneously providing returns to both investors and stakeholders.
Monét Basson, a transactor at RMB Namibia, commented, "The proficiency of RMB in crafting cutting-edge sustainable financing options that adhere to global standards has once more allowed FNB Namibia to tap into the sustainable finance sector with credibility. This deal underscores the enhanced value proposition offered by RMB to Namibian customers and emphasizes our dedication to promoting sustainable economic growth within the nation, along with expanding the domestic debt capital markets."
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