JP Morgan Chase bank expected to issue and manage sovereign debt in Angola

8 June 2011

Luanda, Angola, 8 June – Issuing US$500 million in Angolan sovereign debt may be the responsibility of US bank JP Morgan Chase, said Angolan weekly newspaper Expansão, citing the Angolan Finance Minister.

Minister Carlos Alberto Lopes told the weekly that other proposals had been made and that no decision had been made on the matter.

However, Expansão reported that JP Morgan was in a better position than its competitors, which have so far not been identified, given that it is the only bank that had Always been with the government,” since it started talking about issuing Angolan public debt.

The government’s initial plan was to issue US$4 billion in bonds – in two equal tranches in December 2009 and June 2010 – with the support of JP Morgan, although at the time Angola had no credit rating.

In April 2010, the government altered its plans and asked three international ratings agencies – Standard and Poor’s, Moody’s and Fitch Ratings – to rate Angola’s sovereign debt.

This year the Angolan government once again asked the agencies to update their rating, and Fitch Ratings, which was the first to do so, increased Angola’s rating by one notch.

Expansão noted that throughout this entire process the government had the support of JP Morgan Chase. (macauhub)

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