Halister News

(Bloomberg) -- “We’d prefer to have more clarity and information on the overall debt position before being comfortable recommending the bonds again,” Exotix Global Head of Research Stuart Culverhouse says in report.

• July 11 statement from Angolan govt should go some way to reassuring bond holders after recent negative news
• Finance Ministry has tried to explain decision to call off IMF program talks, reassure investors
• Angola points to rising oil prices, govt has been able to borrow elsewhere
• Angola reports strong liquidity cushion, significant new external financing, pursuit of structural reforms
• “It doesn’t sound to us like a govt that is about to default”
• However, there is growing concern about govt borrowing spree
• “We have concerns about the level of debt, the debt burden, terms of new debt and debt service profile”
• Foreign debt burden could have risen to 58% of GDP
• “We think investors will share these concerns over the lack of transparency about its debt position and debt metrics, particularly in light of events in Mozambique”
• NOTE: Yield on Angolan Eurobond due Nov. 2025 -10bps to 10.05% as of 12:59pm in capital, Luanda
• NOTE: Angola’s Inflation Rate Climbs to Highest Since at Least 2011 Link
• NOTE: Angola Forecasts 2016 Budget Deficit at 6% vs 5.5% Earlier Link
• NOTE: Angolan Bonds Plunge as President Warns of Debt- Payment Struggle Link
• NOTE: Mozambique Yields at Record as IMF Warns of Debt Distress Link