Finance minister Ericah Shafudah says the government is finalising a refinancing facility with three local banks to cover the remaining gap for the redemption of Namibia's N$12.96-billion Eurobond, due on 29 October.

Shafudah says preparations for the repayment have been underway since the bond was issued in 2015.

"When we talked to investors back in 2015, when we issued this bond, many were not really sure the government of Namibia would put in place the instruments necessary to ensure that, come the 29th of October, we would be able to redeem this bond," she said on Monday.

She noted that about N$8.64 billion has already been secured through reserves, contributions to a sinking fund, local markets and commercial banks.

"The refinancing facility is currently being processed to ensure a smooth transaction," she said.

The minister added that the redemption forms part of a wider debt strategy. She said domestic bonds GC25 and G125 had already been redeemed in April and july, respectively.

Looking ahead, Shafudah said fiscal prudence would remain key.