With significant portion of the government debt is due for repayment, government is edging closer to its largest maturity, the US$750 (N$14.3 billion) Eurobond due on 29 October 2025 which will be the largest single day debt maturity in the history of the country.
According to Simonis Storm, debt servicing metrics, although stabilizing, remain above the desired benchmark of 10% of revenues.
Essentially, government will commit to redirect part of the increased revenue towards the sinking fund to manage the rollover risk and contain increases in future debt obligations.
“The government is committed to redirecting part of the increase in revenues towards the sinking fund to manage the rollover risk and contain future debt service obligations. Specifically, at least N$3.5 billion during FY2024/25 and some N$2.0 billion in FY2025/26 of the Southern African Customs Union (SACU) receipts will be transmitted to the sinking fund to retire two thirds of the US$750 million Eurobond due on 29 October 2025,” said Simonis Storm.
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