Angola likely to delay debt issue for a few months

2 December 2009

New York, United States, 2 Dec – The Angolan government may be forced to delay its projected issue of public bonds due to the recent decision by Dubai to request a postponement of ist debt payment, according to the Eurasia Group.

Angola announced on 13 November that it planned to issue up to US$4 billion in debt without an independent credit rating given by specialised ratings companies such as Moody’s Investors Service, Standard & Poor’s or Fitch Ratings.

“The surprise from Dubai may in the short term cool investor interest in Angola’s bonds,” Philipe de Pontet, an Africa analyst at Eurasia told news agency Bloomberg, adding that the alleged lack of interest could lead the Angolan authorities to rethink their strategy of issuing debt without a rating.

Angola plans to garner funds to move ahead with its national reconstruction projects following the drop in price of oil on the world markets, which accounts for 80 percent of state revenues.

“I think it is in the Angolan government’s interest to wait a few months,” said Pontet adding that having a rating would make it easier to secure potential investors. (macauhub)