"In recent years, the government has done more than simply engage in economic reforms, reducing superfluous spending; under the leadership of President João Lourenço, it has developed and deepened ties with the main credit institutions, which has proved very valuable in navigation of the difficult period for the economy, with several global and severe shocks, such as the drop in oil prices and the Covid-19 pandemic", said Marisa Lourenço.
Speaking to Lusa following the release of the debt plan for 2022, which provides for a return to the financial markets this quarter, with an issue of at least US$2.8 billion, the analyst predicted the operation to be a success.
“When the next issuance is launched, demand is likely to outstrip supply, which already happened in November 2019, when the US$3 billion issuance exceeded expectations; investor confidence in Angola has likely increased since then, sustained in the improvement of the opinion of the rating agencies in the last five months", explained the analyst.
For Marisa Lourenço, Angola "is still high risk, but for investors willing to risk it, it also offers high returns".
The Government expects to return to the international financial markets this quarter, issuing up to US$2.8 billion, according to the presentation of the debt plan, available on the Finance website.
According to the document, dated 8 February, Angola expects to raise US$10.74 million this year, of which up to US$2.8 billion are expected to be raised on international markets through the issuance of debt in foreign currency. (Eurobond).
Angola is thus preparing to issue debt again for the first time since 2019, and after having planned to issue a new issuance at the end of last year, while the International Monetary Fund (IMF) financial assistance program is in effect.
The second oil producer in sub-Saharan Africa also plans to contract international loans and financing from commercial, bilateral and concessional entities in the amount of 2 billion kwanzas, equivalent to US$3.18 billion.
Domestically, Angola expects to borrow US$4.76 billion, divided into US$320 million in contractual debt and US$4.44 billion in securitized debt.
Consultant says return to markets shows that Angola has done its homework
The analyst at consultancy Control Risks who follows the Angolan economy told Lusa that the return to the markets shows that the Government has done its homework and expects the operation to be a success.
