* Eurobond with yield of 9.5 percent maturing in 10 years
* Angola economy suffering from the lower price of crude
* Bond deepens ties with international capital markets
(Adds Fitch rating of Angola bond)
By Herculano Coroado
LUANDA, Nov 5 Angola sold its first Eurobond on
Thursday, raising $1.5 billion via a 10-year issue with a yield
of 9.5 percent whose proceeds will be used to support long-term
economic development, the finance minister said on Thursday.
The oil-producing southern African nation has said it issued
the sovereign debt in order to be less dependent on traditional
sources of credit such as bilateral and commercial funds.
Angola has suffered from the lower price of crude, weakening
its currency about 35 percent against the dollar this year.
The government has said that a sovereign issuance could
enhance Angola's transparency in the management of its public
accounts and better manage the state's financing costs.
"This inaugural issue is an extremely important step for our
country and we view this as the beginning of a long-term
relationship with the international capital markets," Finance
Minister Armando Manuel said in a statement.
Manuel did not give details of how the cash raised would be
used. He concluded a 10-day roadshow across the United States
and Europe in New York on Wednesday, having gathered more than
100 potential investors who included fund managers, banks and
pension funds, officials said.
Fitch Ratings assigned the bond maturing in November 2025 a
"highly speculative " B+ rating, in line with Angola's sovereign
rating. Angola is rated Ba2 by Moody's and B+ by Standard &
Poor's and Fitch.
The government hired Deutsche Bank as leader of a consortium
that included Goldman Sachs and ICBC International to arrange
the meetings with U.S. and European investors.
Angola's initially announced plans for a debut Eurobond in
2011 but delayed the deal.
The economy will grow more slowly than expected this year,
the government has said, as lower oil revenues hit public
spending, hobble the currency and push up debt levels in
Africa's second largest crude exporter.
Luanda in October cut its 2015 growth forecast to 4 percent
from a previous estimate of 6 percent. Angola relies on oil
exports for two-thirds of tax revenue and 95 percent of foreign
(Writing by James Macharia; Editing by Catherine Evans)