The oil-rich southern African country issued the sovereign debt ‒ in the form of Eurobonds ‒ on the London Stock Exchange, marking Angola’s entry into the international capital market.

Angolan president José Eduardo dos Santos issued a letter of mandate authorising Goldman Sachs International, Deutsche Bank and the Industrial and Commercial Bank of China to act as agents on behalf of Angola.

It is hoped the bond issue, which is part of Angola’s public financial management programme, will diversify available sources of external funding.

Other potential benefits cited by the government include: the establishment of relationships with international investors, which could become long-term sources of funding; more positive evaluations from credit rating agencies; easier access to capital markets through the construction of a yield curve; and an increase in international reserves by increasing the inflow of foreign capital.

In a statement, the government highlighted a “long and painstaking process” of study, consultation and advisory discussions with the likes of Goldman Sachs, JP Morgan, the World Bank and the International Monetary Fund as well as regular assessments by major international credit rating agencies. This had determined that sovereign issuance could enhance Angola’s image abroad and attract European and American investors, especially in light of the progress made following the end of armed conflict.

Angola was blighted by almost 27 years of civil war, beginning in 1975 when the country achieved independence from Portugal. The conflict finally came to an end in 2002.

The nation had planned to issue its Eurobonds at the end of September, but chose to postpone to await better market conditions.