Africa-Press – Angola. Angola sold, for the first time, public debt issued in Kwanza to a foreign investor, who bought 4.5 billion kwanzas, equivalent to 9.1 million euros, in an operation mediated by Standard Bank Angola.
“The entry of a non-resident represents their confidence in the local market and in the reforms that have been carried out at the level of the economy and the financial system, with the country receiving foreign financing using the issuance of debt in national currency”, he told the Lusa an official source for Standard Bank Angola.
The source said that the aforementioned operation promotes liquidity in the capital and foreign exchange markets and the expansion of the base of investors in the securities market, which is particularly important, given the proximity of the issuance of public debt in foreign currency (Eurobond), planned for the next few days, worth up to three billion dollars.
To date, public debt issued in the local market has been acquired by national investors, since, added the official source of Standard Bank Angola, they are “Non-Adjustable Treasury Bonds (OTNR), with a maturity of 6 years ”.
This locally issued public debt operation is normally reserved for local banks, which purchase securities for their own portfolio or submit purchase proposals on behalf of customers, which is what happened in this case. “Standard Bank Angola submitted a proposal to purchase bonds in the primary market on behalf of its non-resident client,” said the same source.
Asked who the foreign investor is who bought Angolan public debt in Kwanza, Standard Bank prefers anonymity, as well as not confirming possible speculation around the Chinese CBCI, a London branch owned by the Bank of Commerce and Industry of China.
The information on the purchase of public debt in Kwanza by a foreign investor, for the first time, comes on the eve of the first Eurobond issuance by Angola, since the end of 2019, scheduled for the next few days, in a value that can go up to 3 billion of dollars.
Also in this first half of April, Angola is expected to buy back up to US$750 million of debt already issued, seeking to capitalize on the good economic moment it is experiencing, with the exit from recession in 2021 and the improvement of the rating by the financial rating agencies. .
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