Sonangol bond issue is “welcome” to the Angolan Stock Exchange

The Angola Debt and Securities Exchange (Bodiva) today welcomed Sonangol’s decision to issue bonds, worth the equivalent of $150 million (142 million euros), announced by the state oil company.

According to the head of Bodiva’s Market Development Department, Nivaldo Matias, Sonangol’s initiative has not yet been formally announced to the institution, however, the oil company’s decision is “welcome.

Regarding “the recent case of Sonangol, we are very happy with the news, with the initiative,” said Nivaldo Matias, adding that the process is formalized with the integration of the bonds in Bodiva’s central securities depository and with the request for admission to trading.

Nivaldo Matias pointed out that they are aware that, besides Sonangol, one of the largest companies in the country, other companies in the Angolan financial market are also already considering the capital market as an alternative source of financing to the banking system.

“Bodiva is happy that companies are considering this, because it will effectively help the financing problem, which many economic agents are complaining about, but because the Sonangol brand is also showing this appetite for capital markets, it will perhaps motivate other companies to realize that there is another source of financing,” he stressed.

Sonangol said that at an opportune date it will move forward with a bond issue, in an amount equivalent to US$150 million, noting that “among the various ways of financing its activities, the company considered this route, which allows the investor to periodically receive interest on this bond debt instrument, as well as the amount invested.

“This financing model will leverage the operations and investments based on a company with more than 46 years of experience in the oil sector, whose vision is to become a reference company on the African continent, always committed to the sustainability and development of the country,” says the company’s statement released last Saturday.

Regarding the process of going public this year, which is now ending, of some companies, such as Somoil, the largest national private oil company, Banco Millennium Atlântico, among others, Nivaldo Matias said that there are two or more initiatives by these entities for financing or capital increase within the capital market.

“Somoil has been in contact with us, as has Millennium Atlântico and other entities, however, this step depends entirely on the companies in particular,” he stressed.

According to Nivaldo Matias, Bodiva has all the conditions, from human, technological and legal, so that these interests can materialize.

“They are brands of the Angolan market already that can have all the success foreseen, it only depends now on the decision of these entities to move forward and hope that they have all the success,” he indicated.

“We believe that in 2023/2024 we may have more operations, but still many of them are on a path of preparation so that the process has a greater speed of implementation,” signaled the responsible, noting that for the preparation of an issue, companies may need between nine to 12 months, which depending on their organizational component the period can be shortened.