Africa Angola Debt Finance Government

Angola’s Eurobonds issue exceeds expectations

The international market offer estimated at USD 8.4 billion exceeded the Angola’s third Eurobonds issuance expectations set at USD 3 billion.

Angola’s Executive authorised the issuance of Eurobonds in the international market on November 7 this year, according to a note released by the Finance Ministry that reached Angop on Wednesday.

The issuance was conducted on November 19 in London financial market, after a roadshow led by Angolan minister of Finance, Vera Daves, in the cities of New York, Boston and London.

“The investor community has clearly expressed its confidence in the breadth, speed and depth of the institutional and economic reforms being implemented by the Executive led by President João Lourenço, with demand reaching a maximum of USD 8.44 billion,” stresses the document.

The operation enabled the country to raise USD 3 billion, dividing the transaction into two tranches, reducing interest rates by 25 percentage points for all maturities.

A 10-year tranche with a par value of USD 1.75 billion, with a coupon interest rate of 8.00% and a 30-year tranche with a par value of 1.25 billion dollars, with a coupon interest rate of 9,125%.

This Public Debt Security occurs after the 1.5 billion issue made at the end of 2015, as well as the April 2018 issuance of USD 3 billion.

This Government Debt is issued after the issuance of USD 3 billion in 2018, divided into two installments, with the first of which set at USD 1.750 million issued with a coupon interest rate of 8.25%. The second, with a maturity of 30 years and a nominal value of USD 1.250 million, was issued with an interest rate of 9.375%.

Angola’s first Eurobond was issued in 2015, worth USD 1.5 billion.

The issuance of this third Eurobonds results from Presidential Order No. 197/19 of 7 November.

Source: Angop

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