Expect more finance in Hardap and //Karas

The Development Bank of Namibia (DBN) will introduce its financing for enterprise and infrastructure – and requirements for financing – from 09.10.2017 to 13.10.2017, in Hardap and //Karas.

Potential borrowers for large and SME enterprises are invited to attend information sessions to be held in the following towns :

 

 

Town

Location

Time

Date

Rehoboth

 Rehoboth Community Hall

10h00 AM - 11h00 AM

 Monday - 09.10.2017

Mariental

 Mariental Hotel

11h30 AM - 13h00 PM

Tuesday - 10. 0.2017

Lüderitz

Lüderitz Nest Hotel

11h30 AM - 13h00 PM

Thursday - 12.10.2017

Oranjemund

Zacharia Lewala Community Hall

12h00 PM - 16h00 PM

Friday  - 13.10.2017

 

For more information Call Edla Kaveterua on 061 290 8000 or email This email address is being protected from spambots. You need JavaScript enabled to view it.

Oct 05 2017

Three years to make a difference for the disabled DBN Senior Communication Manager Jerome Mutumba on DBN’s support for Cheshire Homes in Katima Mulilo

Development Bank of Namibia (DBN) Senior Communications Manager Jerome Mutumba has announced significant funding for the Cheshire Home in Katima Mulilo. The center provides shelter for children and youths living with disabilities.

In terms of the agreement with the Cheshire Home, DBN will provide N$250,000 annually for three years. The total of N$750,000 will be dedicated to upgrading facilities at the center. The first tranche of N$250,000 is earmarked for provision of solar power.

Talking about the donation, Mutumba says, although the amount appears substantial, it is a drop in an ocean of need. The residents of the Cheshire Home in Katima Mulilo, are some of the most vulnerable in Namibia, and come from poverty-stricken environments that made it impossible to give them adequate food, clothing, shelter and education.

Mutumba goes on to challenge other enterprises to assist the home with other needs that exist, and may arise. He invites DBN borrowers and other potential donors to call his office for contact details. By giving together, he says, all can make a difference.

On the topic of DBN’s social responsibility, Mutumba says that although the Bank provides commercial lending for developmentally beneficial projects, it provides support to entities that cannot qualify for loans, by virtue of non-profit status, through its corporate social investment programme.

He explains that, with the agreement of the Bank’s shareholder, Minister of Finance, Hon. Calle Schlettwein, representing the Ministry of Finance and the Government, the Bank sets aside a portion of its profit for the dual purposes of corporate social investment and the Bank’s Project Preparation Fund.

The Bank’s Corporate Social Investment Policy has multiple targets, defined by specific fields in which the Bank seeks to make targeted interventions. These are poverty alleviation, development of education, skills development, care for the environment, community health, and activities that materially improve the business environment.

He notes that the Cheshire Home in Katima Mulilo satisfy multiple targets of the Bank’s social investment policy, including health, education, skills development and poverty alleviation. He concludes by saying that the Bank regards the center as a signature project of its social responsibility.

Sep 22 2017

Development Bank opens doors to SMEs

Development Bank of Namibia (DBN) CEO Martin Inkumbi has announced that the Bank will resume financing for SMEs. The announcement follows in the wake of the suspension of operations of SME Bank.

 

Talking about the resumption of SME finance, Inkumbi says that due to the gap in the market for finance, the Bank and the Minister of Finance, Hon. Calle Schlettwein, the Bank’s shareholder representative, have agreed that DBN should take the necessary steps to resume its financing activities for SMEs.

 

Inkumbi says that the Bank has the capacity, the necessary pool of capital, as well as the ability to redirect human resource capacity to fill the gap. Previously, the Bank shifted its focus to providing finance for larger enterprises. Inkumbi, however, states that the Bank has maintained its stable of SME borrowers that it developed prior to the shift in focus, and that new borrowers will be inducted into the current system.

 

Asked about what SME borrowers can expect from DBN, Inkumbi says that new applicants will be required to demonstrate viability of proposals for finance in terms of the Bank’s assessment process, including business plans, the necessary human resources to maintain operations, willingness to share risks with the Bank, and consideration of aspects of risk entailed in individual applications.

 

Asked about new elements that may impact SMEs, Inkumbi notes that DBN has put in place an environmental and social management system to ensure adherence to relevant environmental and social legislation, and to minimize negative impacts on the environment.

 

He also says that the Bank has introduced a client support function which can provide coaching and mentorship to further develop capacity for SMEs.

 

On the topic of the current SME Bank borrowers, Inkumbi states that DBN will not necessary be taking over existing loans, but will consider new financing requirements to start and or expand business activities.  All applications for finance will be subject to DBN’s normal due diligence process. This process, he explains, was established, and has been tested and refined over the years, since the Bank’s inception in 2004.

 

All applications for SME finance will be treated on individual merit, based on the appraisal of the Bank’s Portfolio Managers, as well as its Credit and Risk Committees. Inkumbi directs potential applicants to the Bank’s website, www.dbn.com.na, where they can find out more about the requirements for borrowing and download application forms.

 

The Bank, Inkumbi concludes, is aware of the importance of SMEs for the economic development of Namibia. Consequently, successful applicants for SME finance can expect more in terms of support.

 

Sep 20 2017

DBN lists Successful debut bond issue on NSX

The Development Bank of Namibia (DBN) issued the first notes under its N$ 2.5 billion Medium-Term Note Programme on Tuesday 5 September and raised a total amount of N$ 291 million.

The programme is part of the Bank’ strategy to diversify its source of funding and raise money on the market for on-lending to financially viable, environmental, and socially acceptable projects with developmental impact in line with the Bank’s business plan.

The 3-year bond (series “DBN20”) was issued through an oversubscribed auction process that was held on 31 August 2017. The bond pays a floating rate coupon quarterly, linked to the JIBAR rate and will mature on 4 September 2020.

The issue marks the first time that the Bank has formally approached Namibian capital markets to raise funding, and depending on future cash flow requirements, the Bank will be a regular issuer in the Namibian capital markets going forward. This is indeed a momentous occasion for the Bank which signaled market confidence in the Bank.

The Bank had planned to raise between N$200 million and N$ 300 million on its debut bond issue, and was well supported and oversubscribed by 26 staggered bids from 13 different investors both in Namibia and South Africa.

The total subscription amounted to N$ 428 million, and DBN issued a total amount of N$ 291 million at a spread of 190 basis points over the current JIBAR.

The Development Bank of Namibia’s N$2.5 billion Medium Term Note Programme aims to provide an alternative source of funding which forms part of the board approved funding strategy, in line with the bank’s targeted gearing ratio.

DBN has been well capitalized over the years by its sole shareholder- the Government of the Republic of Namibia, but now recognises that it needs to leverage its unencumbered balance sheet.

The Bank has also recently established a treasury function to manage its liquidity and funding needs, and is building an active presence in the Namibian money and capital markets in the realization of one of its core mandate.

The Development Bank of Namibia obtained a Long-Term Issuer Default rating of BBB- and National scale rating of AAA(zaf) by Fitch ratings.

This rating is equal to the sovereign (Government of the Republic of Namibia).

Sep 11 2017

Latest Events

No events found