How to Buy Government Bonds — Step by Step
This guide walks retail investors through the complete process of purchasing Angola government bonds via the Portal do Investidor, from identifying the right auction to receiving your first coupon payment. Before proceeding, ensure you have completed the registration process.
Step 1: Check the Auction Calendar
Before placing a bid, identify which auctions are upcoming and what instruments are available:
- Log in to the Portal do Investidor
- Navigate to the auction section, which displays upcoming BT and OT auctions
- Review the details for each auction: instrument type, maturity, coupon rate (for OTs), indicative volume, and bid submission deadline
- Cross-reference with the auction calendar for the broader schedule
Choosing an instrument:
| If You Want… | Consider… | Typical Yield |
|---|---|---|
| Short-term parking of cash | BT 91-day | ~17.5% |
| Higher yield, 6-month horizon | BT 182-day | ~18.0% |
| Maximum BT yield | BT 364-day | ~18.5% |
| Regular coupon income | OTNR 2-3 year | 18-19.5% |
| Highest domestic yield | OTNR 5-10 year | 20-22% |
| Currency protection | OTX USD-indexed | 7-9% |
Step 2: Ensure Sufficient Funds
Verify that your linked bank account has sufficient kwanza to cover your intended investment:
- For BTs, the full investment amount is debited at settlement (the discount is reflected in the purchase price being below face value)
- For OTs, the face value amount is debited at settlement
- Factor in the minimum investment amounts for your chosen instrument
- Funds must be available by the settlement date (T+1 for BTs, T+2 for OTs)
Step 3: Submit Your Non-Competitive Bid
Through the Portal do Investidor, retail investors submit non-competitive bids. This means you specify only the amount you wish to invest, not a yield. You will receive the weighted average yield determined by the institutional competitive bidding process.
To submit a bid:
- Select the auction you wish to participate in
- Enter the amount in kwanza (must meet the minimum requirement)
- Confirm the details: instrument, amount, settlement date
- Submit the bid before the stated deadline (typically the morning of auction day)
- Receive a confirmation reference number
Key points about non-competitive bids:
- Your bid is guaranteed allocation up to the non-competitive tranche (typically 10-20% of total auction volume)
- You accept whatever yield the competitive auction produces
- You cannot specify a minimum yield — if you are uncomfortable with potentially lower yields, you may choose not to participate
Step 4: Receive Auction Results
After the auction closes (typically by early afternoon on auction day):
- Results are published on the Portal do Investidor, the MINFIN website, and through BODIVA bulletins
- You will see the weighted average yield, cut-off yield, total amount allotted, and bid-to-cover ratio
- Your allocation confirmation will appear in your portal account
- If the non-competitive tranche was oversubscribed, your allocation may be prorated
Step 5: Settlement
Settlement occurs automatically:
| Instrument | Settlement | What Happens |
|---|---|---|
| BT | T+1 (next business day) | Purchase price debited from bank account; BT credited to CEVAMA account |
| OT (OTNR/OTX) | T+2 (two business days) | Face value debited from bank account; OT credited to CEVAMA account |
After settlement, the securities appear in your CEVAMA account, viewable through the Portal do Investidor.
Step 6: Manage Your Holdings
Once you hold government securities, the portal allows you to:
- View your portfolio — All holdings with face value, instrument type, maturity date, and coupon schedule
- Track coupon payments — For OTs, semi-annual coupon payments are credited directly to your linked bank account, net of IAC withholding (15% standard, 10% for bonds with maturity >3 years)
- Monitor maturities — When a BT or OT matures, the face value is credited to your bank account automatically
- Reinvest proceeds — Use maturity and coupon proceeds to participate in subsequent auctions, building your portfolio over time
Step 7: Reinvest and Build Your Portfolio
Consistent reinvestment is the key to building wealth through Angola’s bond market. Consider these approaches:
- Rolling BTs — Reinvest maturing BTs into new BT auctions each week, maintaining a constant exposure to short-term yields
- Laddering — Spread investments across multiple maturities to create a steady stream of income and reinvestment opportunities (see ladder strategy)
- Income focus — Prioritize longer-dated OTNRs for maximum coupon income (see income strategy)
For a comprehensive overview of investment approaches, see the strategies section.