The Minister of Finance, Archer Mangueira, announced that the issuance of debt in foreign currency (Eurobonds’), will be done in May and expects interest rates of 7 percentstarting tomorning, in New York, a presentation to investors (Roadshow)reported Jornal de Angola.
“Let’s do a ‘Roadshow’ [apresentação aos investidores] in several financial markets, starting in New York, on Monday”, said Archer Mangueira to the Lusa agency, on the sidelines of the Spring Meetings, which end today in Washington, United States.
“The minimum is two billion dollars, but it could be more,” said the minister, highlighting that the expectation is that the interest rates demanded by investors will be in line with those currently practiced in the debt issuance that Angola launched in 2015.
“The expectation we have is that [a taxa de juro] it will be below that of bonds issued in 2015, which are already trading at less than 7 percent; they were launched at 9.5 percent and are being sold at 7 percent, so our expectation is that they will remain at that level”, said the Finance Minister quoted by Lusa.
According to the Annual Debt Plan, Angola plans to raise 6.721 billion kwanzas (23,800 million euros) of public debt in 2018, totaling 54,500 million euros of debt, the same document, prepared by the Ministry of Finance in mid-February , reports that these needs, divided into 4.762 billion kwanzas (18,100 million euros) to be raised in debt issued internally and 1.959 billion kwanzas (7,400 million euros) in external disbursements, aim to “meet the financing needs” of the 2018 Budget .
The Minister of Finance hopes that the approved measures and technical support from the IMF will create conditions for raising financial resources under more favorable conditions than those offered by the Fund.
Quoted by Lusa in Washington, on the sidelines of the Spring Meetings, Archer Mangueira, when asked about the reason for not resorting to IMF financing and opting for the financial markets, explained that this is due to the conviction that international capital markets can offer more advantageous conditions after the reforms.