Angola plans to issue another US$2 billion in Eurobonds

4 February 2019

Angola intends to return to the international capital markets in the second quarter of 2019 to issue US$2 billion in Eurobond, included in the Annual Debt Plan (PAE) for the current year, a Finance Ministry source has confirmed.

The 2019 debt plan includes taking on external and internal public debt in the amount of US$12.371 billion, and the source quoted by Jornal de Angola also said that, in addition to issuing Eurobonds, the government also intends to raise approximately US$4.375 million through credit lines from external markets.

The Ministry of Finance source said that the decision to resort to the debt market will still be analysed based on the assessment of the Extended Funding Facility (EFF) approved by the International Monetary Fund (IMF), due in March following a visit by an IMF mission to Luanda.

“If the assessment is favourable, the Government will move ahead with the issue,” said the official.

This will be the third such issue by the Angolan Treasury, which in previous operations raised US$1.5 billion in 2015 and US$3.5 billion in 2018.

Angola’s public debt is estimated at 21.3 billion kwanzas (US$72.45 billion), with government debt of 20.1 billion kwanzas (US$68.49 billion) and government debt (oil company Sonangol and airline TAAG) estimated at 1.164 trillion kwanzas (US$3.96 billion). (macauhub)