LISBON – Russia’s second-largest bank, VTB, is ready to help the Angolan government raise US$2 billion in financing after providing a loan of US$1 billion earlier this year, chief executive Andrei Kostin has said.
‘We have already arranged financing for the government, and are ready to help raise another US$2 billion for the Angolan economy,’ Kostin said in a telephone interview from Luanda, where he met President Jose Eduardo dos Santos.In August, the Russian group’s investment banking arm raised US$1 billion for oil-rich Angola through a private placement of seven-year paper. ‘This could be done in the same format as the previous operation or through another form of financing, the matter is yet to be discussed,’ Kostin said Wednesday.The debt raised in August carried a yield of 7% and was issued by a special purpose vehicle backed by VTB, but the ultimate risk was with the Angolan government, ratings agency Moody’s said at the time.Banking sources also said at the time the deal could pave the way for a Eurobond issuance. Angola has floated the idea several times in the last few years but the sale has not gone ahead. – Nampa-Reuters
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