Angola: Government considers indexing Treasury Bonds to inflation

15 May 2009

Luanda, Angola, 15 May – The issue of Treasury Bond (BT) indexed to the Consumer Price Index in the city of Luanda is being considered by the Angolan government to attract national currency investors, the deputy Finance Minister said in Luanda Thursday.

Manuel da Cruz Neto, who was speaking about the issue of bonds in Angola, added that these investors no longer had opportunities to invest in short term bonds.

Meanwhile, the National Bank of Angola sold just 2.5 percent of 32 billion kwanzas (US$410 million) in Treasury Bonds at an auction held Wednesday.
The central bank sold 803.3 million kwanzas of bonds with maturities of between one and four years, with rates of between 3 and 5 percentage points on Libor (London Interbank Offer Rate).

The bank also sold 13.8 billion kwanzas in Treasury Bonds at a separate auction, or 46 percent of the 30 billion kwanzas on offer.

Angola plans to issue US$9 billion in debt this year to fund its reconstruction programme, and overcome the fall seen in oil and diamond export revenues. (macauhub)