Angola In Talks With Banks For $2bn Eurobond Sale

(Sundiata Finance) – Angola is in talks with banks to raise $2 billion via a Eurobond in what would be the OPEC member’s biggest debt sale on global capital markets. The government has yet to choose banks to lead the deal and media reports that Russia’s VTB Bank PJSC has the mandate are false, the Finance Ministry said in an emailed statement. The Eurobond issuance was approved by a presidential order on August 4 and will help Angola lengthen its maturities, as well as make it easier for other borrowers from the country tap the market, according to the statement. The sale may only take place toward the end of 2017 and can only happen after a new president and government are appointed, an official at the finance ministry said. “This process has several strategic objectives, namely the extension of the debt profile and the creation of a reference price for national agents,” the statement said. Africa’s second-largest crude exporter is in its worst economic crisis since ending a civil war in 2002 and the Eurobond announcement comes three days after the ruling MPLA party won August 23 elections. President Jose Eduardo dos Santos is stepping down after 38 years in power and — if the results stand — he’ll be replaced by MPLA candidate Joao Lourenco on Sept. 21. The two main opposition parties have rejected the provisional results. Angola’s economic growth fell to zero last year after averaging almost 9 percent in the previous 15 years. The kwanza has sunk 42 percent against the U.S. currency since the crash in crude prices in 2014, but is still overvalued and may be weakened another 20 percent by the end of 2018, which would make foreign debts more expensive, analysts at BMI Research said August 25

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