Angola to have new Treasury bond market

11 March 2013

A new Treasury bond market in Angola that can be accessed by financial intermediaries, as well as banks, to buy and sell the bonds, is due to start operating before the end of the year, Angolan newspaper O País reported.

Citing sources close to the process, the newspaper said that work was underway to establish a secondary market in which financial intermediaries – banks, brokers and other authorised institutions – can operate and give orders to buy and sell state debt on investors’ behalf.

The National Bank of Angola is expected to be responsible for clearing although no firm decision has been made and the market will be supervised by the Capital Markets Commission.

It is likely, given the outline of the project, that the new market may eventually become the new Angolan Stock Exchange, as the secondary market, where stocks are negotiated on a continuous basis, usually includes the Stock Market.

Speaking to financial news agency Bloomberg in February, the governor of the National Bank of Angola admitted that Angola’s first bond market could be set up “in the next few months.”

The trading “floor”, through which the intermediaries have access to the bond market, will have an electronic system, the terminals of which will carry out the transactions.

Initially the new market will involve only Angolan intermediaries and investors, as the legal framework of the transactions needs to be altered and approved. (macauhub)