Africa-Press – Angola. The Angolan Debt and Securities Exchange (BODIVA) recorded a record record by having traded in a single session a value of 124.8 billion kwanzas, exceeding the monthly average.
As announced yesterday to the press, it was a swap operation of Indexed Treasury Bonds (OTTX) for Non-adjustable Treasury Bonds (OTNR), in an amount of 116.9 billion kwanzas, was added to the other counterpart of more than 8 billion kwanzas raised by other different securities traded.
In Bodiva’s view, this operation demonstrates the growing confidence in the stock market and also a certain consolidation of the national capital market.
It is also, from the perspective of managers of the Angolan Debt and Securities Exchange, a sign of stabilization of services, as this market increases the options of investment opportunities, in addition to increasing the financing and liquidity options for companies and families.
Operation Details
In another note sent to the newsrooms, the Ministry of Finance explains that the aforementioned “swap” operation is part of the risk reduction strategy and improvement of the maturity profile of the securitized public debt.
It was in this context that last Friday, 12 August, it carried out the active management operation of State liabilities, technically called swap.
The operation involved the replacement of a set of 32 Treasury Bonds Indexed to the exchange rate, as well as Non-Adjustable Treasury Bonds (OTNR) of 2023 and 2024 by OTNR with maturities of 4, 6, 8 and 10 years.
The decision aimed at reducing the risk of USD/AOA exchange rate exposure – approximately USD 180 million in index-linked bonds were replaced by OTNR; the extension of the maturity of the issues by around 4 years, where Indexed bonds with an average maturity of 2 years were replaced by an OTNR portfolio with a maturity of 4, 6, 8 and 10 years, thus obtaining an average maturity of 6.4 years. It is also intended to smooth the debt amortization profile and reduce the refinancing risk, increase secondary market liquidity, by increasing the size of existing benchmark issues as well as promoting the development of the capital market, by encouraging the trading based on market prices.
As assumed by the Ministry of Finance, the strategy of active management of public debt will continue, with Bodiva as the preferred market, within the established in the Annual Indebtedness Plan (PAE) of 2022, with the possibility of national and international operators participating of said events.
The aforementioned session in which the swap took place took place on Friday, August 12th.
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