Sonangol, the Angolan public oil company, is once again on the international debt market after two years of absence, which coincided with a period of lowest oil prices.

This will be a test operation for the company which enters the market in a context marked by an increase of the oil barrel price and a tougher macroeconomic situation in Angola.

In April 2018, Moody's decreased the country’s sovereign rating indicating the liquidity problems experienced by the government and a public debt that could reach 70% of GDP by the end of 2018.

Since then, things have not changed and the recent government borrowing of $2 billion from a Chinese public financial institution adds to the polemic.

But, according to concordant reports, investors could focus on the potential of Sonangol which has initiated reforms of its structure and management.

The last time Sonangol raised funds on the international capital market dates back to 2016 and, it raised $500 million, the lowest amount it ever mobilized in that market. Let's remind that Standard Chartered Bank and Afrexim Bank had always been the company’s main arrangers.  

Idriss Linge