The Government returned to international markets on Wednesday, May 20, with a USD 1.5 billion Eurobond issuance. This marks the second Eurobond operation this year, two months after the first issuance carried out in March worth USD 2.5 billion.
The transaction was structured as an integrated liability management operation, combining the buyback of two outstanding Eurobonds with the issuance of new debt securities maturing in 2031 and 2037, carrying interest rates of 8.250% and 9.5%, respectively, according to a document from the Ministry of Finance accessed by Expansão.
The operation recorded significant demand, with the order book reaching approximately USD 4.01 billion, signalling, according to the authorities, “investor confidence in the country’s macroeconomic trajectory and financial policy”.
According to the Executive, this strategy improves the public debt profile by reducing refinancing risks and contributing to a more balanced maturity schedule. At the same time, the operation secures resources to support budget execution, in line with the priorities defined in the State Budget and the 2026 Annual Borrowing Plan.
The Ministry of Finance also stressed that the initiative is aligned with the 2026–2028 Medium-Term Debt Strategy, reinforcing Angola’s position in international financial markets and consolidating its sovereign yield curve.
For the Government, the strong investor participation reinforces confidence in the country’s economic path and in its ability to maintain a more predictable and sustainable public debt management framework amid global economic challenges.
Since Angola began issuing Eurobonds in 2015, financing through this mechanism has already exceeded USD 15 billion, with interest rates ranging from the lowest at 8.000% (Palanca IV) to 10.125% for Palanca VIII.
Meanwhile, it is worth noting that Eurobond investors are currently Angola’s largest external creditors, having surpassed the China Development Bank over recent years. This is because the Government has chosen to repay its debt to Chinese institutions as quickly as possible, given that most of those liabilities are backed by oil sales.
Source: Expansão
