Angola is preparing to issue European bonds to finance its economy and to test international investor confidence, Portuguese newspaper Sol reported.
The newspaper said that the bonds would likely be issued this year and that the amount, maturity and country where the bonds would be placed had yet to be decided, although the currency was likely to be US dollars in order to avoid the exchange rate risks of the euro.
Angola has recently issued bonds but this European bond issue will be the country’s first international bond issue and was actually suggested by the International Monetary Fund (IMF).
The issue was recently discussed at the London and Angola Capital Markets seminar promoted by Banco Espírito Santo Angola (BESA), in partnership with the UK Embassy in Angola and the London Stock Exchange.
Álvaro Sobrinho, the chairman of BESA, called for the State to issue “longer term” debt compared to current maturities of eight to ten years.
In his turn, Jorge Ramos, BESA’s coordinator and director for Investment said that “the country needs to diversify its sources of funding because domestic savings will not be enough to cover future investment needs.”
Regular bond issue, both in the domestic and foreign markets, may help to create a secondary bond market in Angola, which is a “government priority” according to the chairman of the Capital Markets Commission. (macauhub)