Nampower acquires N$500 m

RAND Merchant Bank last week successfully placed R500 million of 13-year corporate bonds for national power utility, Nampower.

The issuance was oversubscribed at R820 million with bids from 18 market participants, and 13 being allocated. The bond cleared at 105 basis points over the 2020 R207 government rate.The bond has a semi-annual coupon rate of 9,35 per cent and matures on July 24 2020, and is dual-listed on both the Namibian Stock Exchange and the Bond Exchange of South Africa and denominated in SA Rand.The total registration programme is for R3 billion which will fund Nampower’s expansion of its transmission network inter-connector.The Caprivi Link Inter-connector, scheduled for completion by 2009, will link the electricity networks of Namibia, Zambia and South Africa.The issuance was also co-arranged and placed by PointBreak (Namibia) supported by NedCapital (Namibia) and is the first cross-border debt-raising transaction of its kind in southern African capital markets.The bond cleared at 105 basis points over the 2020 R207 government rate.The bond has a semi-annual coupon rate of 9,35 per cent and matures on July 24 2020, and is dual-listed on both the Namibian Stock Exchange and the Bond Exchange of South Africa and denominated in SA Rand.The total registration programme is for R3 billion which will fund Nampower’s expansion of its transmission network inter-connector.The Caprivi Link Inter-connector, scheduled for completion by 2009, will link the electricity networks of Namibia, Zambia and South Africa.The issuance was also co-arranged and placed by PointBreak (Namibia) supported by NedCapital (Namibia) and is the first cross-border debt-raising transaction of its kind in southern African capital markets.