Namibia utility to raise bonds for links to hydro supply

National utility Namibia Power Corp. (NamPower) plans to raise 3 billion rand (US$423.4 million) to expand its transmission network to neighboring Zambia, the company said.

Half of the money would be raised at the South African Bond Exchange, and the rest would be raised in Namibian bonds, a South African bond official close to the deal said June 20.

The project is due to be completed in 2009 and will provide Namibia with an alternative source of foreign energy and lessen its current dependence on South Africa, the utility said.

Rand Merchant Bank of South Africa and pointBreak of Namibia, supported by NedCapital of Namibia, would play a key role in arranging the bond issue and placing it with local investors, the utility said.

It added the rand-denominated, long-term debt issue would be dual-listed on the Nambian Stock Exchange and the Bond Exchange of South Africa (BESA), becoming the third foreign listing on BESA.

Dubbed the Caprivi Link Interconnector, the new network will establish a link between the Namibian, Zambian, and South African electricity networks. It would provide Namibia with an alternative source of foreign energy and lessen its current dependence on South Africa, the company said.

Among recent regional integration efforts, the World Bank has invited expressions of interest from consultants to guide the bank in supporting Zambezi River Basin investments, including hydropower. (HNN 5/16/07)

No posts to display