Angola has cut back its plans to raise as much as $4 billion in a sale of bonds without credit ratings, according to a report on Bloomberg. It cites Finance Minister Carlos Lopes speaking to reporters in Luanda and says it aims instead to issue $1 billion to $2 billion in May, after finalizing the amount by the end of April.
The country competes with Nigeria as Africa’s biggest oil producer. The bonds are aimed to help pay for government expenditure after oil’s decline from record prices of July 2008 andt is reduced Government incomes, of which 80% comes from crude exports. According to a previous report, JP Morgan Chase and Co. is handling the placement.
David Aserkoff, a strategist at Exotix Holdings Ltd, was quoted as saying: “It’s good that the Finance Ministry is talking about a more sensible issue size, given current market conditions and the fact that Angola has no rating from any of the major agencies… Given the increase in oil prices, it’s likely that Angola’s funding needs aren’t as high as they originally anticipated.”