Angola takes on US$1 billion-loan from Russian bank VTB Capital

11 October 2012

Angola has taken on a loan of US$1 billion with a payment period of seven years from Russian bank VTB Capital, according to international credit rating agency Moody’s cited by Angolan weekly newspaper O País.

The operation is mentioned by Moody’s in its latest report on international sovereign debt issuance in Africa in 2012 and 2013 (International Sovereign Issuance in Africa 2012/2013 – a Rating Agency Perspective’), published Wednesday.

Moody’s said that the indirect issuance of sovereign debt by the Angolan government was not a conventional issuance, although it expected Angola to be one of the African countries that would place sovereign debt over the next two years.

In effect, Angola (which Moody’s gives a rating of Ba3) is part of a group of six African countries that, according to Moody’s will see its debut on the sovereign debt market in the next few years.

The other five countries are Kenya, Rwanda, Tanzania, Uganda, and Mozambique, and Moody’s notes that each may issue a minimum of US$500 million in sovereign debt on the international market, which would make it possible for them to be included on JP Morgan’s Emerging Market Bond Index (EMBIG). (macauhub)

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