africa Angola Banking Economy Finance

Angola to issue Treasury Bonds indexed to the dollar to pay down debt

The Angolan Finance Minister plans to issue Treasury Bonds to pay down debt and finance projects from the beginning of the 2018 financial year until the approval of the General State Budget for this year, under a presidential order.

The order, published in the Diário da República bulletin, dated 24 January, states that the Finance Minister can issue up to 301.2 billion kwanzas (US$1.478 billion) in Treasury Bonds indexed to the dollar exchange rate.

The Minister of Finance will establish, by Executive Order, the method of placement, the currency of the issue, its nominal value, interest rate and coupon and the repayment terms of these bonds, interest on which will be paid every six months in the selected currency.

The issue provides for the payment of interest rates of 7% per year for three years, and up to 8.75% for 10-year issues.

Source: Macauhub

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