Felix Njini Windhoek
THE DEVELOPMENT Bank of Namibia would raise up to N$2.5 billion (R2.5bn) selling bonds and arranging credit lines to boost lending to businesses, chief executive Martin Inkumbi said yesterday.
The bank was considering starting its first capital raising in the fourth quarter as part of a plan also aimed at lessening its dependence on the National Treasury, the main source of financial support. The proposal had the finance ministry’s backing, Inkumbi said.
“The bank is ready to commence with its debt-capital raising programme as determined by the funding needs of upcoming development projects and the bank’s liquidity requirements,” Inkumbi said.
The state-run bank is strengthening its ability to lend to companies developing projects in the fifth-biggest uranium producer. Economic growth is forecast to reach 4.3 percent this year, faster than the Southern African Development Community’s average of 3.9 percent, according to the International Monetary Fund.
The institution’s state-approved capital-raising rules allow it to borrow 100 percent of its own capital. Fund raising tools would be used “to appropriately match the assets to be financed”, Inkumbi said.
The bank would use money raised “to advance loans to economically viable projects and businesses” and financing would be arranged “when there is a need”, he said. – Bloomberg