N$250m bond moves online

Bank Windhoek has become the first bank and corporate bond issuer to dematerialise an NSX-listed corporate bond, marking a further step in Namibia's move towards a fully electronic capital market.The bank's BWJh28L Sustainability-Linked Bond, valued at N$250.5 million and issued in August 2025, has been converted from a paper-based security into an electronic record held in the Central Securities Depository (CSD).The move follows the launch of the CSD in December 2025 by the Namibia Securities Exchange (NSX), in partnership with the Bank of Namibia and under the oversight of the Namibia Financial Institutions Supervisory Authority (NAMFISA).The CSD is intended to modernise the country's financial-market infrastructure by allowing securities, clearing, settlement and ownership registration to be managed electronically.Paper certificates replacedUnder the new system, ownership of the Bank Windhoek bond is recorded electronically rather than through physical certificates.Interest payments and changes in ownership will be processed electronically through the CSD by the bank's appointed CSD participant, NSX Financial Market Services (FMS).Registered bondholders were notified on 8 August 2026 and asked to submit their certificates for verification and conversion on 21 August.Bank Windhoek said the process was completed successfully, with investor asset registers updated and verified by the close of business on the same day.The transaction is the first practical use of the CSD's dematerialisation capability for a listed corporate bond in Namibia.A precedent for the marketBank Windhoek Managing Director James Chapman said the bank's role in the process extended beyond the conversion of a physical certificate into an electronic record."The launch of the CSD is an important development for Namibia's capital markets, and we are proud that Bank Windhoek could play a pioneering role in bringing this initiative into operation for a corporate bond," he said."As the first bank and corporate issuer to complete the dematerialisation process, we see our role as being a partner in piloting initiatives that support national priorities and strengthen Namibia's financial-market infrastructure."Chapman said the initiative showed how cooperation between market participants could support the development of a more efficient and secure financial system."Innovation is not only about what we do within Bank Windhoek; it is also about how we contribute to the evolution of the markets in which we operate," he said."This initiative demonstrates what can be achieved when market participants work together to create a more efficient, transparent and secure financial system for Namibia."Faster settlement and lower riskDematerialisation replaces physical securities certificates with electronic ownership records.The system is expected to make trading and settlement more efficient while reducing risks associated with paper certificates, including loss, damage, theft, forgery and misplacement.Other potential benefits include faster and more secure settlement of transactions and the direct payment of interest into investors' nominated bank accounts.The CSD is expected over time to facilitate the conversion of other certificate-based financial instruments into electronic securities, including bonds, treasury bills, negotiable certificates of deposit and equities.The development is also intended to support broader participation in Namibia's capital markets by modernising the infrastructure used to hold and transfer securities.More Bank Windhoek bonds to followBank Windhoek said it had notified investors in its three other NSX-listed bonds that those instruments would be dematerialised on 8 September 2026.Once the process is completed, all of the bank's NSX-listed bonds will be held electronically through the CSD.The bank said investors would receive sufficient notice before being required to submit certificates for future dematerialisation.

N$250m bond moves online

Kommentaar

Republikein 2026-08-28

Meld asseblief aan om kommentaar te lewer

N$250m bond moves online

Kommentaar

Republikein 2026-08-28

Meld asseblief aan om kommentaar te lewer

Intekening vereis om toegang tot inhoud te kry. ×

MELD AAN

Advertensie

Intekening vereis om toegang tot inhoud te kry.