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Angola has officially returned to the international capital markets, marking its first sovereign Eurobond issuance since 2022. According to a statement released by the Ministry of Finance on Tuesday, the country successfully raised USD 1.75 billion through a two-part Eurobond offering that launched on Monday.
Structure of the Eurobond Issuance
The transaction was divided into two tranches:
- USD 1 billion tranche maturing in 2030 (five-year maturity), carrying a semiannual interest rate (coupon) of 9.25%
- USD 750 million tranche maturing in 2035 (ten-year maturity), with a semiannual coupon rate of 9.78%
These bonds, which will pay interest twice a year, mark a significant return for Angola to the global debt market. The last such issuance occurred in 2022 and was also valued at USD 1.75 billion.The Ministry highlighted the robust demand from global investors, with orders exceeding $6 billion, more than triple the amount Angola ultimately raised. This strong demand, according to the government, reflects “the credibility and confidence of international markets in the Angolan economy.”
Goals: Fiscal Stability, Debt Management, and Economic Growth
This debt issuance is a key part of Angola’s broader economic strategy. The Ministry of Finance stated that the move is aimed at:
- Diversifying sources of external financing
- Optimizing public debt management
- Contributing to fiscal balance
- Aligning with both current risk perceptions of Angola and the global economic climate
Additional Fundraising via Foreign Currency Treasury Bonds
In a complementary effort, the government also announced its plan to issue up to USD 300 million in Foreign Currency Treasury Bonds (OT-ME). These bonds are intended to help finance the 2025 State Budget.
This additional initiative is designed to:
- Attract more domestic and international investment
- Diversify financing sources for the national budget
- Expand the range of financial instruments available to absorb savings from economic agents
The OT-ME bonds will also pay interest semiannually, and will be available to all investors, both domestic and foreign. According to the Ministry, proceeds will support the achievement of economic and social goals outlined in the 2025 budget.
Settlement Dates and Currency Notes
The issuance will be settled in two phases:
- October 17th
- October 31st
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The Ministry of Finance emphasized that both the Eurobond and OT-ME issuances are intended to raise capital in both foreign and local currency, aligning with Angola’s broader financial strategy for sustainable economic development and fiscal consolidation.