Luanda: The Angolan government has revealed plans to issue public debt bonds amounting to 64 million US dollars to support the construction and rehabilitation of 43 dams in Namibe, a southern province. This initiative is part of Angola's broader strategy to secure funding for sustainable water infrastructure projects.
According to Angola Press News Agency, the operation, named 'Kissonde', aims to gather funds in both foreign and national currency. The bonds will be issued in a 'bookbuilding' format, with original maturities ranging from 5 to 8 years. The offering is open to all investors and will be conducted from May 26 to June 4, 2025. Interested parties are encouraged to reach out to authorized financial institutions, including banks, distribution companies, and securities brokers, to participate.
The bonds carry maturity dates of February 15, 2029, for the 5-year bonds, and September 15, 2031, for the 8-year bonds, with interest rates set at 5% and 7%, respectively. Public Debt Bonds are tools the government uses to finance its expenditures, making investors creditors of the government.
The Finance Ministry anticipates significant impacts from the operation, aligning with the United Nations Sustainable Development Goals (SDGs), particularly in social, economic, and environmental sectors. Socially, the initiative is expected to improve living conditions in rural areas by increasing access to drinking water and irrigation, thereby reducing poverty and enhancing the resilience of local communities against climate and water-related challenges.
Economically, the bonds are projected to boost agriculture, enhance food production, and promote crop diversification, contributing to local economic growth. The construction and maintenance of the dams are expected to create both direct and indirect job opportunities and stimulate other economic sectors such as commerce and industry.
In the environmental field, the loan will serve to improve the management of water resources, with the construction of infrastructures that help mitigate the effects of drought and desertification, as well as creating the potential for more efficient water management, contributing to environmental conservation and the sustainable development of Namibe province.
