At FNB Namibia, we specialise in the arranging of direct funding from the capital markets for corporates, and parastatals. The main forms of instruments we use are corporate bonds and syndicated loans. Our market leading expertise lies in the critical success areas of structuring, credit rating and placement of these instruments in the capital markets.
Corporate bonds and commercial paper are debt instruments issued by a corporate or parastatal directly to a capital market investor. Syndicated loans comprise loans granted by a group of banks, or banks and capital market lenders to corporate or parastatal borrowers. They allow the sharing of credit risk between various leaders without the disclosure and marketing burden that the issuers face.
An NCD bears a maturity date.
Investments are for 12 month, 18 month and 24 month periods.
The interest rate payable, is set against the 3 Month Jibar rate and paid quarterly.
The negotiable certificate of deposit often comes in bearer form and can trade in the secondary market.