Administrative Procedures & Taxation

The Bank of Namibia places advertisements in the media, mainly local newspapers, via e-mail, and on the Reuters System, officially inviting the public to participate in tenders for Government securities. Advertisements inviting tenders for TB’s and IRS are placed in the media prior to auction date. Tender forms may be obtained on each business day subsequent to the announcement of an issue. Completed tender forms are submitted in sealed envelopes addressed to The Manager: Investments and Domestic Markets Division and deposited into the designated tender box by 10:00 at the Bank on the auction date stated in the advertisements. Alternatively, tender forms can be sent to the Bank via its dedicated fax number. In the case of institutions and where agents are involved, tender forms must be signed under a power of attorney and accompanied by the original power of attorney. The Bank cannot be held liable for tenders that did nor reach the office in time.

The Bank of Namibia, in conjunction with the Ministry of Finance, determines the allotments of the issue shortly after the closure of the bid. Tender results are announced through the media, Reuters page (BONNA2), fax, e-mail and telephone not later than 16:00 on the auction date. For TBs allotments are made in a descending order of bid prices, meaning that the most attractive (i.e., relatively high) prices stand a better chance of getting an allotment, because a relatively high price subjects the Government to lower cost of borrowing. However, for IRS allotments are made in an ascending order of yield to maturity.

Bids for TBs must be for a minimum of N$10 000. For IRS the minimum is N$50 000, but, larger amounts can be tendered for in multiples of N$10 000. Successful bidders are required to provide payment at the Bank of Namibia, not later than 10:00 a.m. on the second business day following the announcement of the allotment. Settlements by commercial banks are done through the CRISP system (an electronic payment system) or clearance vouchers. For others, that is, businesses and individuals, settlement can be made in the form of clearance vouchers or bank cheques. Personal cheques and certified or guaranteed cheques by banks are not acceptable for settlement.

If redemption or interest payment falls on a non-working day, the payment would take place on the following working day without interest compensation.