Angola wants Sonangol Bond Issuance to boost financial basis

Angolan government said it intends to launch the first Sonangol bonds issue, worth Akz 75 billion, to strengthen the country’s financial base and boost economic development in a sustainable manner.

The first issue of bonds will be at a unit price of 10,000 kwanzas, corresponding to 7. 5 million bonds, at an interest rate of 17.5% per year.

The offer of Sonangol 2023-2028 Bonds is aimed at natural or legal persons who are resident or have an establishment in Angola, and must have a minimum investment of 10 bonds, 100,000 kwanzas.

Áurea – Sociedade Distribuidora de Valores Mobiliários, BFA Capital Markets – SDVM, S.A. and Standard Bank will be the intermediaries responsible for placing the bonds.

The issuance is part of the company’s strategy to diversify its funding sources, allowing it to leverage its operations and strategic investments.

Sonangol’s vision is to become a benchmark company on the African continent, committed to the country’s sustainability and development, said the Secretary of State for Oil and Gas, José Alexandre Barroso.

Addressing the first bond issue launch ceremony, José Barroso said that the State, as a shareholder of Sonangol, is quite confident with this step, mainly due to the positive impact that this issue should have on the national financial market.

He considered it a historic act for the Angolan Public Business Sector, as it was the first Issuance of Bond by Sonangol and Public Offering of Subscription of Bonds.

The official added that the aim is that, in the short and medium term, other public companies may choose to diversify their similar funding sources and further boost the Angolan Capital Market.

He recalled the Angolan Executive’s commitment to listing Sonangol on the stock exchange by 2026, adding that “this issue is crucial for the process that will lead to the Initial Public Offering (IPO) of the company

Source: Angola Press News Agency