Windhoek — International financial markets received with huge appetite Namibia's first multi-billion dollar sovereign 10-year Eurobond issue in the international market.

USA and United Kingdom-based financial institutions gobbled up the lion's share of the US$500 million bond (about N$3,9 billion) with an allocation of 75 percent.

Investors from continental Europe, the Middle East, Asia and Africa were left with about 25 percent of the total bond issued to share, according to the Ministry of Finance.

The positive reception of the Eurobond thwarted fears among analysts who had been apprehensive of the success of bond issued in Europe, at a time when the strongest European financial houses are battling to withstand the ongoing sovereign debt crisis that spread from Greece.

Namibia is raising money in international financial markets to fund the Targeted Intervention Programme for Employment and Economic Growth (TIPEEG), the job creation and reconstruction programme the treasury launched at a cost N$15 billion over the next three years.

The programme is billed to create more than 100 000 job opportunities in the short term.

As part of raising the capital, which is expected to push up total public debt to about 30 percent of the GDP in three years, the central bank has been asked to issue bonds on stock exchanges in London and Johannesburg, along with various other money instruments, such as treasury bills, in the domestic market.

According to information from the finance ministry, the US$500 million debut bond has an annual coupon offer of 5,5 percent payable semi-annually, and was issued at a re-offer price of 98,119 percent.

"The Republic [of Namibia]'s inaugural issue priced with a yield of 336 basis points over the 10-year US Treasury bond and is expected to be rated Baa3 by Moody's [rating agency] and BBB by Fitch [rating agency]," said the Ministry of Finance.