Ver Angola

Economy

Angola's first 'green bond' will be in the area of Energy and Water

The Angolan finance minister said this Thursday that the first projects to move forward within the scope of issuing sustainable bonds, or 'green bonds', will be in energy and water, in an issue of less than US$1 billion.

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"The presidential decree defines the framework for action, and the next step, as soon as it is published, will be to identify the areas in which we can advance, it could be governance, social, or environment, but most likely we will seek to identify projects in the energy and water sector, that in a single movement help to create cleaner energies, cleaner sources of access to electricity, and at the same time the need to electrify areas that will create an environment for the private sector to come and do its part", said Vera Daves de Sousa in statements to journalists, apart from their participation in the second 'Public Finance Meetings - Building Strong and Inclusive Institutions', taking place in Lisbon.

"We are very inclined to look at the energy and water sector as one of those eligible to move forward", stressed the finance minister, stressing that the issuance of green debt will be made in an amount of less than one billion dollars.

"I said less than a billion dollars, neither the exact amount nor the 'timing' has yet been defined, it will depend on market conditions, we have to reconcile that objective with the objective of debt sustainability, and go to the market at a moment when it is almost closed for the emerging economies, I would not be notified", said Vera Daves de Sousa.

Issuance of green debt securities goes to the financial market where the financing is destined to projects with the objectives of improving governance or having environmental or social objectives in the country for which they are destined, with models in which the amount of interest is determined taking into account into account the results of the investments.

The meeting began this Thursday with a speech by the Minister of Finance on the theme "Public Finance Reform - the recent path and the great challenges in Angola".

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