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Angola recently announced plans to issue US$4bn worth of bonds in international markets. This would be the largest-ever issue to come from sub-Saharan Africa, made even more exceptional by the fact that Angola does not have a sovereign credit rating.
Investors’ appetite for emerging-market debt is returning, with spreads narrowing and large issues—such as Qatar’s US$7bn deal earlier this week—finding eager buyers. A number of sub-Saharan countries had debut international bonds in the pipeline before the financial crisis struck; the subsequent risk aversion and glut of developed-country debt forced these plans to the shelf. If Angola’s issue is successful, it will inspire others across the continent to revive borrowing plans.
Read more at Financial Services Briefing: “Loans for Luanda” (November 20th)