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Angola's mysterious recent $1bn private placement, sold by VTB Capital on August 10 and first reported by EuroWeek on August 14, could well mean that the country has no need to pursue its debut public Eurobond, which had been expected in September.
According to a source close to the private placement, the seven year Reg S deal that VTB sold to around 50 investors could leave JP Morgan waiting for some time to execute the public benchmark for which it holds the mandate.
"Based on current market conditions, it's not the right time to be doing [a public benchmark]," said the source. "The country doesn't want to saturate the market and there's no great need for more money."
The source did not rule out other international private placements for Angola being sold, however.
JP Morgan has not commented publicly on the mandate. VTB has also not commented on the private placement.
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