Angola postpones $1.5bn Eurobond

Oct 02, 2015

The government said the delay is due to "challenging economic conditions".

Angola has delayed plans for a $1.5 billion (€1.3 billion) Eurobond due to challenging economic conditions, a finance ministry source told Reuters on Wednesday (September 30th).

It has not set a new time frame for the issue, which was initially planned between September 25th and October 5th.

The source said Angola is struggling with low oil prices and a sharp devaluation of the kwanza currency.

The announcement comes a few weeks after US rating agency Standard & Poor’s (S&P) revised its outlook for Angola from stable to negative.

It said the outlook revision reflects the continued weakening of Angola's fiscal and external positions since its last review in February 2015.

"The oil producing nation has been hit by falling crude prices, which have led to fiscal and external deficits for Angola in 2014, which we forecast will widen further in 2015 before moderating slightly from 2016," S&P said.

The credit rating of public debt of Angola was held at 'B+'. S&P forecasts that the Angolan economy will grow by 3.5 per cent in 2016, four per cent in 2017 and five per cent the following year.ADNFCR-2976-ID-801802111-ADNFCR