Sonangol is set to launch a bond issuance tomorrow August 15th, through which it will contract debt in the amount of 75 billion kwanzas with a maturity of five years (2023-2028), according to a statement released by the company on Friday.
In the document, the oil company announces a Public Subscription Offering of bonds valued at 75 billion kwanzas, at a unit price of 10,000 kwanzas, corresponding to 10 million units at an interest rate of 17.5 percent.
Coinciding with this announcement, the Capital Market Commission (CMC) declared in a statement published on its electronic platform that it had approved the prospectus for Sonangol’s public subscription offering, which will be listed for trading on Bodiva.
The CMC also added that it had verified the issuer’s legal, economic, and financial compliance in all aspects, referring to the Angolan state-owned oil company.
In the statement, the CMC highlighted that this marks the first non-financial institution of Angolan law to issue bonds that will be traded on the stock market.
Reactions to this issuance emphasize that the coupon rate of these bonds is slightly above the interest rate set by the National Bank of Angola (BNA), which is 17 percent, and below the expected average annual inflation rate for 2023, projected by the central bank to be between 12 and 14 percent.
The offering of Sonangol Bonds 2023-2028 is aimed at individuals or entities that are residents or have establishments in Angola, as stated by the Angolan state-owned oil company in the launch announcement of what will be their first debt issuance conducted through the Angolan stock exchange.
The established regulations for the operation stipulate that subscription orders to be fulfilled are subject to applicable subscription and allocation criteria, in case demand exceeds the available obligations.
Each subscription order must pertain to at least ten bonds, which implies a minimum investment amount of 100,000 kwanzas.
The bonds grant their holders the right to capital reimbursement on September 14, 2028, and semi-annual interest payments at a fixed annual rate of 17.50 percent (gross nominal annual rate), subject to the prevailing tax regime, and they are freely transferable.
They will be integrated into the Angola Securities Central, with the ISIN code AOSNLEDOFA16, after which admission to trading on the Stock Market managed by Bodiva will be requested.
Banco Fomento Angola (BFA), Standard Bank, and Áurea – Sociedade Distribuidora de Valores Mobiliários will serve as intermediaries responsible for placing the bonds.
