Angola to Sell $2 Billion Bonds Locally as Eurobond Delayed

  • Preparations continue for shelved Eurobond sale, ministry says
  • Finances in Africa's No.2 oil producer strained by oil slump

Angola, sub-Saharan Africa’s second-largest oil producer, plans to sell as much as $2 billion of bonds in its local market after delaying a debut Eurobond.

Finance Minister Armando Manuel authorized the offer of foreign-currency notes, the ministry said in an e-mailed statement Wednesday in the capital, Luanda.

Angola postponed plans for a $1.5 billion Eurobond sale to await better market conditions, with the central bank governor and finance minister canceling a trip to market the debt at the end of last month, a person familiar with the arrangements said at the time. “Preparation continues” for the Eurobond sale, the ministry said in its statement.

MAP: Angola
MAP: Angola

Angola’s credit rating was lowered to four levels below investment grade on Sept. 25 by Fitch Ratings, which cited a dependence on oil as the country faces the prospect of its first current-account deficit since 2009. Angola is struggling to cope with a 40 percent slump in Brent crude prices in the past year. The commodity accounts for the bulk of government revenue and almost all export earnings.

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