Angola To Meet U.S., European Investors For First Eurobond Sale October 26

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Angola, sub-Saharan Africa’s second-largest oil producer, plans to meet investors in the U.S. and Europe effective October 26 to generate interest in its first Eurobond sale, Footprint to Africa reports.
According to a source familiar with the matter who craves anonymity, Deutsche Bank AG, Goldman Sachs Group Inc. and Industrial & Commercial Bank of China Ltd. will arrange the road show.
Angola, the source recounted postponed plans for a $1.5 billion Eurobond sale to await better market conditions
The country first tapped international debt markets in 2012 when it issued a $1 billion loan participation note, similar to a Eurobond. Yields on the note, due in August 2019, rose 1 basis point to 7.61 per cent at 1:53 p.m. in Luanda, the capital.
The Angola government, which derives about two-thirds of revenues from oil, is cutting spending after Brent crude prices dropped more than 40 per cent in the past year. Public investment was reduced by 53 per cent this year, Vice President Manuel Vicente informed lawmakers on Oct. 15.
The kwanza has weakened 24 per cent against the dollar in 2015, second only to Zambia’s kwacha among 24 African currencies monitored by Bloomberg.
The 2019 securities have gained 0.4 per cent in the past three months, compared with 0.7 per cent for 63 emerging markets tracked by Bloomberg.

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