FNB bond holders must go digital by 9 November

First National Bank of Namibia (FNB Namibia) bondholders must convert their paper certificates into electronic records by 9 November to continue trading their bonds on the Namibia Securities Exchange (NSX).

In a notice issued on 23 October, FNB Namibia says bonds issued under code FNBJ28S would no longer be tradable after 9 November unless they had been dematerialised and transferred into the Namibia Central Securities Depository (CSD) system.

Dematerialisation is the process of replacing physical bond certificates with electronic records of ownership.

“The dematerialisation does not affect your ownership of the bonds and merely replaces the physical certificate with an electronic record of ownership,” the bank says.

The register for the bonds will be closed from 6 to 9 November to allow the conversion process to take place. During this period, transfers, trading and other changes to the register will not be permitted, except for transactions related to dematerialisation.

Bondholders must appoint a central securities depository participant (CSDP) to facilitate the process. Investors who hold their bonds through a broker can approach their registered stockbroker for assistance.

Once a central securities account has been opened, investors must submit their original bond certificates to their appointed CSDP. Broker-controlled clients can hand their certificates to their brokers for submission.

FNB Namibia says investors should confirm applicable account-opening fees and other charges directly with their chosen service provider.

The move is part of the transition to electronic securities trading and settlement under Namibia’s CSD framework.

Electronic holdings are intended to make bond transactions more efficient, speed up settlement and reduce the risks associated with paper certificates, including loss, theft, damage and forgery.

The system also allows interest payments to be deposited directly into investors’ nominated bank accounts, reducing the risk of payment delays.

FNB Namibia urges bondholders to complete the process as soon as possible to avoid losing the ability to trade their holdings after the deadline.

The notice was issued by group treasurer Selma Kapeng in Windhoek on behalf of FNB Namibia Limited.

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