Projecto Bonds (Bonds Project) could help the government of Angola to raise funding for public works related to energy, water supply, sanitation and road and rail transport, said in Luanda the chairman of the Capital Market Commission (CMC).
The CMC recently signed a memorandum of understanding called Projecto Bonds with Banco Económico (former Banco Espírito Santo de Angola), Millennium Atlântico and Standard Bank of Angola to finance public infrastructure programmes, through public-private partnerships.
The chairman of the CMC, Vera Daves, said the financial mechanism will involve the private sector in financing infrastructure or projects that have a high potential for profitability, with easily embedded costs.
“Financing infrastructure projects by using the capital market to issue bonds is the purpose of the Bonds Project, which will allow the creation of public-private partnerships to carry out works that to date have been exclusively the responsibility of the State,” said Daves.
Daves said the projects that will be invested in had yet to be identified, but added that once the Memorandum of Understanding has been signed, both the Capital Market Commission and the signatory banks will begin analysing opportunities.
“When the projects have been identified, the CMC will simply be the promoter and, when the prospecting is complete, the banks will be free to organise the specific bond issues,” he said. (macauhub)