Angola issues US$20 billion in debt in 2015

11 February 2015

Angola plans this year to issue public debt of US$20 billion to private investors and pay interest of up to 7 percent, the director of the Public Debt Management Unit of the Ministry of Finance said Tuesday in Luanda.

Angélica Paquete, who presented the 2015 Annual Debt Plan, said this amount was needed to ensure the financing of the 2015 State Budget, distributed equally between domestic and international markets.

“In the 2015 fiscal year we have introduced the possibility of private or collective investors gaining access to the primary market,” said Paquete.

Private investors can take on Treasury Bills, with shorter maturities and interest rates ranging from 4.5 percent (91 days) and 6 percent (364 days) for a total amount to be allotted by the State equivalent to 402 billion kwanza (US$3.8 billion).

Private investors will also have access via the National Bank of Angola to Treasury Bonds with maturities of 2-5 years and a 7 percent interest rate, described by the Angolan government as one of the highest returns in the world on this type of financial product .

In this way the Angolan state expects to collect over 480 billion kwanza (US$4.6 billion) this year, despite the unfavourable economic and financial situation in the country, due to a fall in oil revenues.

Paquete also announced that this year the first debt issue will be carried out in the international market, with the support of financial partners in the sector.

Angola’s “stock” of public debt this year, according to the latest forecast from the Ministry of Finance, will reach US$48.3 billion, which corresponds to 35.5 percent of GDP between foreign debt (24.5 percent) and domestic debt (11 percent). (macauhub/AO)