- Deutsche Bank, Goldman Sachs, ICBC hired for dollar bond sale
- Finance Ministry says its goal is to raise $1.5 billion
Angola, sub-Saharan Africa’s second-largest oil producer, plans to meet investors in the U.S. and Europe starting Oct. 26 to promote its first Eurobond sale.
Deutsche Bank AG, Goldman Sachs Group Inc. and Industrial & Commercial Bank of China Ltd. will arrange the road show, according to a person familiar with the matter, who asked not to be identified and is not authorized to speak publicly. The government plans to raise as much as $1.5 billion, the Luanda-based Finance Ministry said in an e-mailed statement on Thursday.
Angola postponed plans last month to meet investors before selling Eurobonds to await better market conditions, a person familiar with the plan said at the time. 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 7 basis point to 7.66 percent at 9 p.m. in Luanda, the capital.
The government, which derives about two-thirds of revenues from oil, is cutting spending after crude prices dropped more than 40 percent in the past year. Public investment was reduced by more than half this year, Vice President Manuel Vicente told lawmakers last week.
The kwanza has weakened 24 percent against the dollar in 2015, second only to Zambia’s kwacha among 24 African currencies monitored by Bloomberg.