According to Reuters, Angola is in discussion with banks to contribute $2 billion worth of Eurobonds. Africa’s second largest crude producer is attempting to raise money due to an economic crisis that is caused by a drop in the value of oil. Issued Eurobonds would stretch the maturities of Angola’s debt and provide a point for borrows looking to reach international markets.
“This process has several strategic objectives, namely the extension of the debt profile and the creation of a reference price for national agents,” the finance ministry said. Jose Eduardo dos Santos, president of Angola for the last 38 years will be replaced in September, following elections last week. João Lourenço will take his position. Lourenço has pledged to revive the country’s economy by finding different ways to attract foreign investment other than oil.