BoN launches new capital market instrument

THE Bank of Namibia (BoN) announced on Friday that it had introduced a new capital market instrument, an Internal Registered Stock, to be known as “GC 24”.

The new capital market instrument is being introduced in conjunction with the Ministry of Finance. In a media release issued on Friday afternoon, the bank’s Deputy Governor Paul Hartmann explained that the introduction of this long-term instrument is aimed at developing the domestic capital market and also to be used as a tool to improve the government’s cash flow.He said the latter is in line with the Government’s budget statement (medium-term expenditure framework) of 2004 and 2005, where the government expressed the intention to finance domestic borrowing requirements by using bonds rather than treasury bills.The details of the bond as provided are as follow: Name/Bond Code GC 24 Original Duration 20 years; Issue Date: August 15 2004; Maturity Date: October 15 2004; Coupon: 10,50 per cent; Coupon dates: April 15, October 15; RSA Benchmark R186 (N$186).Hartmann added that the new introduced instrument is expected to long-term institutional investors, who had expressed interest in longer-term instruments.-NampaIn a media release issued on Friday afternoon, the bank’s Deputy Governor Paul Hartmann explained that the introduction of this long-term instrument is aimed at developing the domestic capital market and also to be used as a tool to improve the government’s cash flow.He said the latter is in line with the Government’s budget statement (medium-term expenditure framework) of 2004 and 2005, where the government expressed the intention to finance domestic borrowing requirements by using bonds rather than treasury bills.The details of the bond as provided are as follow: Name/Bond Code GC 24 Original Duration 20 years; Issue Date: August 15 2004; Maturity Date: October 15 2004; Coupon: 10,50 per cent; Coupon dates: April 15, October 15; RSA Benchmark R186 (N$186).Hartmann added that the new introduced instrument is expected to long-term institutional investors, who had expressed interest in longer-term instruments.-Nampa