Key facts
- Angola's Ministry of Finance is initiating a liability management transaction.
- The plan involves repurchasing outstanding U.S. dollar-denominated bonds maturing in 2028 and 2029.
- New bonds with maturities in 2031 and 2037 will be issued concurrently.
- The maximum buyback size is set at new issue proceeds minus USD 500 million.
- This implies at least USD 500 million in fresh financing will be raised.
Angola's Ministry of Finance is undertaking a liability management operation aimed at extending the country's debt maturity profile. The operation involves repurchasing existing U.S. dollar-denominated bonds that mature in 2028 and 2029. Simultaneously, the ministry plans to issue new bonds with longer maturities, set for 2031 and 2037. The size of the bond buyback is capped, with the maximum amount determined by the proceeds from the new issuance minus USD 500 million. This structure ensures that at least USD 500 million in new financing will be secured. Initial pricing guidance for the new bonds indicates a funding cost in the range of 8.5% to 9.75%.