Angolan government prepares €1.75bn Eurobond issue in second quarter of 2019

  • Lusa
  • 4 February 2019

The Angolan government is going to issue €1.75 billion in Eurobonds, according to the country's Annual Debt Plan. It is the third time the Angolan treasury issues Eurobonds.

Angolan’s government is preparing a new $2-billion (€1.75-billion) issue of Eurobonds for the second quarter of this year, according to the Annual Debt Plan (PAE).

This will be the third issue of its kind by the Angolan treasury, which in previous operations was thus able to raise $1.5 billion in 2015 and $3.5 billion in 2018.

According to the 2019 PAE drafted by the Ministry of Finance, containing the government’s debt plans for this year, the second quarter is to see a new issuance of Eurobonds, through which the state expects to raise the equivalent of 622.2 billion kwanzas, or $2 billion.

Overall, the plan foresees the issuance of Angolan $3.862 trillion kwanzas in public debt, internal and external.

In the foreign market, in addition to the issuance of Eurobonds, the government also expects to guarantee 1.373 trillion kwanzas through credit lines.

In 2019, Angola’s debt servicing costs – amortization, interest, and commissions – which involves treasury bills and bonds in national and foreign currency, will total 5.206 trillion kwanzas, according to the PAE.

In the first issuance of Eurobonds, in 2015, Angola placed $1.5 billion in 10-year bonds.

The April 2018 issue was in two installments, the first with a maturity of ten years and with a nominal value of $1.75 billion dollars, with a coupon fixed at 8.25%. The second installment, with a maturity of 30 years and nominal value of $1.25 billion dollars, was issued with a coupon of 9.375%.

Three months later, the government went ahead and reopened the latter issue, given the strong demand, securing a further $500 million dollars.