Angola cancels 1.5 billion dollar Eurobond due to weak economy

Angola cancels 1.5 billion dollar Eurobond due to weak economy

Angola has cancelled plans for a $1.5 billion Eurobond due to challenging economic conditions and has not set a new time frame for the issue, a finance ministry source said on Wednesday.

Angola was due to hold a Eurobond roadshow between Sept. 25 and Oct. 5 but it was cancelled after sub-Saharan Africa’s third largest economy was hit by subdued oil prices, including a sharp devaluation of the kwanza currency, the source said.

“Our partners have recommended we not launch the initiative at this time due to the economic distress in Angola and around the world,” the ministry source told Reuters.

The finance ministry declined to comment officially.

Africa’s second largest oil exporter had planned to borrow $10 billion externally this year, including its debut Eurobond, as it battles to support its economy following a year of depressed global crude prices.

Fitch cut Angola’s credit rating on Friday citing the country’s heavy reliance on revenues from oil, which accounts for 95 percent of foreign exchange earnings.

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