Angola to Sell $2 Billion Bonds Locally as Eurobond Delayedby
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.
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.