Rand Merchant Bank (RMB) acted as Arranger, Dealer, Sustainability Advisor, and Coordinator for First National Bank of Namibia Ltd (FNB Namibia) in its inaugural N$500 million sustainability note issuance under FNB Namibia’s NSX-listed Domestic Medium-Term Note Programme. This issuance marks a significant milestone in FNB Namibia’s sustainability journey, building on its previous green note issuance to further support impactful green and social initiatives.
The sustainability note issuance attracted 13 investors, increasing the diversity of those who typically bid for FNB Namibia notes. The auction was1.88 times oversubscribed, with over NAD 940 million in bids received. A total of NAD 500 million in three-year notes were allocated to 11 investors at a rate of 3-month JIBAR + 78 bps. This rate has improved considerably since FNB Namibia’s senior, green issuance at 3m JIBAR + 145 bps, demonstrating a strong investor appetite for sustainable issuances.
The proceeds from the sustainability note will be allocated to eligible green and social assets, reinforcing FNB Namibia’s commitment to financing projects that promote environmental sustainability and social development. These include renewable energy, financial inclusion, and social infrastructure—critical areas that contribute to a more resilient and inclusive Namibian economy and support the national development agenda.
Sustainability is at the core of FNB Namibia’s vision for a globally competitive Namibia. This sustainability note issuance not only strengthens the bank’s commitment to responsible investment, but also enhances the development of Namibia’s sustainable bond market, fostering greater investor engagement and long-term economic growth.
This issuance was structured under FirstRand’s new Sustainable Finance Framework (SFF), published in November 2024, and independently assessed by S&P. The SFF aligns with best practice international principles.
FirstRand Namibia Group Treasurer, Selma Kapeng says, “FNB Namibia has successfully issued a NAD 500 million Sustainability Note, underscoring the bank’s strategic commitment to embed sustainability in our funding framework. The transaction aligns with global best practice, channelling proceeds toward impactful green and social initiatives that foster long-term resilience and inclusive economic growth. Through this issuance, we reinforce our role as a catalyst for sustainable development while delivering value to investors and stakeholders alike”.
RMB’s expertise in structuring innovative sustainable finance solutions that adhere to international best practices has once again enabled FNB Namibia to benefit from the sustainable finance market in a credible manner. The transaction showcases the value that RMB can provide to Namibian clients and highlights our commitment to driving sustainable economic development in the country, as well as growing the local debt capital markets,” concludes Monét Basson, Transactor at RMB Namibia.
