Angola Driving Ahead with Eurobond Plan as Oil Prices Falls

Angola Driving Ahead with Eurobond Plan as Oil Prices Falls

Angola’s Finance Minister announced that his country will meet with investors in the US and Europe starting October 26 to promote its first Eurobond sale, said Bloomberg.

Angola, the continent’s second-largest oil producer, plans to raise as much as $1.5b , in response to declining oil prices.

Deutsche Bank AG, Goldman Sachs Group Inc. and Industrial & Commercial Bank of China Ltd. will arrange the road show, revealed a source.

Angola had postponed plans to meet investors last month, apparently to await better market conditions.

According to Reuters Angola expects growth for 2016 to fall to 3.3% thanks to oil prices.

“The government is expecting the price of a barrel of oil to drop to 45 dollars, taking into account the framework of the volatility of this product in the international market,” Finance Minister Armando Manuel said.

Last week Vice President Manuel Vincente cut the 2015 forecast from 6 to 4%.

Angola relies on oil exports for two-thirds of tax revenue and 95% of its foreign currency receipts.

“The country is still economically viable and our deficit is moderate,” Manuel insisted.

 

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