Bank Windhoek’s first Sustainability Bond raises N$250.5 million
STAFF REPORTER
Bank Windhoek mobilised capital by issuing a new thematic instrument, a Sustainability-Linked Bond (SLB). This milestone reaffirms Bank Windhoek’s commitment to supporting Namibia’s economic growth by leveraging its mandate as a financial institution to mobilise capital and commit to stimulating inclusive and sustainable development.
An SLB is a fixed-income instrument (Bond) whose financial and structural characteristics are tied to predefined sustainability objectives, differentiating it from the typical use of proceeds-type instruments.
“As a truly Namibian bank, we recognise the importance of financing traditional growth sectors and prioritising emerging, high-impact niches within the economy. One such area is Sustainable Finance, which is not only about risk and return but also prioritises specific impact areas linked to national development goals and sustainability objectives,” said Bank Windhoek’s Chief Treasurer, Claire Hobbs.
Building on its experience as the first Namibian issuer of Green and Sustainability Bonds, the Bank has used the lessons and momentum gained from these instruments to explore new models that further drive sustainability integration into its operations. “The Sustainability- Linked Bond is a significant evolution in our approach: unlike use-of-proceeds bonds, this instrument directly commits the Bank to achieving defined sustainability performance targets,” said Hobbs.
According to Hobbs, the SLB attracted bids of N$525.5 million, of which N$ 250.5 million was allocated at a rate of 3-month Johannesburg Interbank Rare of plus 80 basis points.
“The auction was 1.75 times oversubscribed speaking to investor interest for this type of thematic issuance, that is a first of its kind for the Namibian market,” said Hobbs.
Aligned with its strategic focus and the Sustainability Performance Target (SPT) of the bond, Bank Windhoek has committed to deploying N$300 million in sustainable finance over the next two years. Hobbs emphasised that this target is grounded in the work the Bank has already undertaken through its Sustainability Loan offering, which has been a primary vehicle for financing projects aligned to sustainable outcomes.
Hobbs added that the focus is to enable and empower small-scale projects, speaking to the ambition of this commitment, recognising that collective impact built on many small contributions can significantly drive resilience and inclusive development.
“In designing this instrument, being a relationship bank, we engaged with various stakeholders, drawing from their insights and global best practices we could learn from. The resulting bond structure reflects our first attempt at this type of instrument, the unique market contexts and institutional capacity, while also challenging us to raise the bar in sustainable finance,” said Hobbs.
Further details, including the instrument’s motivation and structure, are available in the Bank’s Sustainability-Linked Bond Framework, which can be accessed via the Bank Windhoek website, www.bankwindhoek.com.na, under the Listed Bonds section or the Sustainability Hub.
Bank Windhoek mobilised capital by issuing a new thematic instrument, a Sustainability-Linked Bond (SLB). This milestone reaffirms Bank Windhoek’s commitment to supporting Namibia’s economic growth by leveraging its mandate as a financial institution to mobilise capital and commit to stimulating inclusive and sustainable development.
An SLB is a fixed-income instrument (Bond) whose financial and structural characteristics are tied to predefined sustainability objectives, differentiating it from the typical use of proceeds-type instruments.
“As a truly Namibian bank, we recognise the importance of financing traditional growth sectors and prioritising emerging, high-impact niches within the economy. One such area is Sustainable Finance, which is not only about risk and return but also prioritises specific impact areas linked to national development goals and sustainability objectives,” said Bank Windhoek’s Chief Treasurer, Claire Hobbs.
Building on its experience as the first Namibian issuer of Green and Sustainability Bonds, the Bank has used the lessons and momentum gained from these instruments to explore new models that further drive sustainability integration into its operations. “The Sustainability- Linked Bond is a significant evolution in our approach: unlike use-of-proceeds bonds, this instrument directly commits the Bank to achieving defined sustainability performance targets,” said Hobbs.
According to Hobbs, the SLB attracted bids of N$525.5 million, of which N$ 250.5 million was allocated at a rate of 3-month Johannesburg Interbank Rare of plus 80 basis points.
“The auction was 1.75 times oversubscribed speaking to investor interest for this type of thematic issuance, that is a first of its kind for the Namibian market,” said Hobbs.
Aligned with its strategic focus and the Sustainability Performance Target (SPT) of the bond, Bank Windhoek has committed to deploying N$300 million in sustainable finance over the next two years. Hobbs emphasised that this target is grounded in the work the Bank has already undertaken through its Sustainability Loan offering, which has been a primary vehicle for financing projects aligned to sustainable outcomes.
Hobbs added that the focus is to enable and empower small-scale projects, speaking to the ambition of this commitment, recognising that collective impact built on many small contributions can significantly drive resilience and inclusive development.
“In designing this instrument, being a relationship bank, we engaged with various stakeholders, drawing from their insights and global best practices we could learn from. The resulting bond structure reflects our first attempt at this type of instrument, the unique market contexts and institutional capacity, while also challenging us to raise the bar in sustainable finance,” said Hobbs.
Further details, including the instrument’s motivation and structure, are available in the Bank’s Sustainability-Linked Bond Framework, which can be accessed via the Bank Windhoek website, www.bankwindhoek.com.na, under the Listed Bonds section or the Sustainability Hub.
