In a statement, the tutelage states that the country "successfully concluded the simultaneous issuance of a new package of debt securities on the international market in Eurobonds, in the amount of 1.75 billion dollars, with a maturity of 10 years and a rate of 8.75 percent".
The operation also served as "a strategic exercise in liability management, with the repurchase in a public offer of short-term coupon Eurobonds (Angola 9.5 percent 2025s) in the amount of 636 million dollars", the note said.
According to the note, the transaction marks the "successful" return of the country to the international capital market, in Eurobonds, after being absent for more than two years, "and equals the largest issue of Eurobonds ever" for Angola.
The Ministry of Finance also points out that the transaction also proved the interest in issuing Angolan debt, "despite the greater volatility of the market, with an order backlog reaching a peak of 4 billion dollars from more than 190 investors, representing a subscription fee 2.3 times higher than the offer".
According to the document, during the operation, carried out on the London Stock Exchange, the country achieved "a very high quality order book, with orders from high-performance asset managers and real money accounts representing 75 percent of final allocations, and volumes of orders from major investors higher than other sovereign debt issuances carried out by emerging countries this year".
The tutelage also states that the "transaction priced with a new issuance concession of around 12.5 basis points represents the lowest premium of new sovereign issuance in emerging markets this year".
Regarding the strategic exercise of liability management, the ministry indicates that it "had a strong reception in the market", highlighting Angola's "pro-active and solid debt management policy" that remains within the regulatory models of the main international organizations.
"The success of the partial repurchase of the 'Eurobonds with maturity of 2025' allows Angola to limit refinancing risks, prolong the maturity of its debt and reduce its average cost, thus mitigating greater pressures on treasury", the note adds, which adds that the country continues to focus on "pro-active and transparent investor communication", having met with "more than 75 investors to answer questions before the transaction".
