Angola to return to eurobond market through Russian bank VTB

23 August 2017

The Angolan government has selected Russian bank VTB to set up and lead the country’s second issue of eurobonds to raise up to US$2 billion, according to a presidential order dated 21 August.

The Angolan state made its eurobond debut in November 2015, raising about US$1.5 billion through a banking syndicate led by US-based Goldman Sachs International, which included Germany’s Deutsche Bank and China’s ICBC International.

The presidential order quoted by Portuguese news agency Lusa said, “as it is necessary to start work to investigate raising external financing through sovereign bonds of the Republic of Angola, the debt refinancing strategy with the VTB bank is approved.”

The Russian bank has financed several projects in Angola, and in 2014 approved a loan of US$1.5 billion, under an agreement signed with the Angolan government.

A presidential order published in early August authorised the Finance Minister to put up to US$2 billion in eurobonds in order to “improve the composition of the external debt portfolio.”

The debt plan for 2017 outlines gross financing needs of 4.667 trillion kwanzas (US$28 billion), 75% of this total raised on the domestic market. (macauhub)